UK wants scrapping incentive after sales success in Germany
Encouraged by the success that Germany has enjoyed in spurring new car sales through its vehicle scrapping program, officials for the Society of Motor Manufacturers and Traders in the United Kingdom are pushing their government to institute a similar plan as quickly as possible. Sales in the UK were down nearly 22% in February and are off by almost a third so far in 2009. Germany, on the other hand, managed to score a sales increase of 21% last month due in large part to incentives that pay new car purchasers €2,500 for trading in and therefore removing their old car from the road, though vehicles must be at least nine years old to qualify.
We expect similar overtures from more countries looking to boost their respective domestic automotive industries. U.S. officials have considered vehicle scrapping plans as recently as last year, though nothing has managed to make it through the legislative process just yet. Stay tuned.
[Source: Automotive News - sub. req'd | Photo: Patrick Dockens]
Reader Comments (Page 1 of 2)
BigMcLargeHuge 2:36PM (3/05/2009)
Would have been better than a bailout.
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sw 2:50PM (3/05/2009)
I agree with you. The bailout just ensured that the bad practices of the past will go on a little longer.
AMcA 11:56PM (3/05/2009)
That's gotta be the weirdest wrinkle on consumerism I've ever seen: the people, through their government, pay to discard working vehicles to encourage the production of more vehicles.
It's like buying food, and throwing it directly into the disposal and having your neighbor buy you more.
Weird. That's the best I can say of this plan.
Of course the Obama Administration will eat it up - any excuse to redistribute from the earning classes to the non- and less-earning classes.
catfish 2:39AM (3/06/2009)
of course that is pretty much what they did back in the great depression... slaughtered farm animals, burned crops, and payed farmers not to farm to reduce the glut in the market.
adrian 12:03PM (3/06/2009)
Depends on where the money goes. A lot of the more popular cars are not made in the UK. Those that are made there are foreign owned.
Bert 2:44PM (3/05/2009)
Nothing says "let's protect the environment" like this sort of government forced consumerism!
Let's take a potentially viable car off the road simply because it is old. Maybe we should do that with old drivers! Mandate a DOT inspection, emissions tests, etc. but don't force me to buy a new car.
While they are at it, the next things will be: appliances have a 10 year self-destruct cycle; we must buy a new home every 10 years. What next?
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Willem B 2:48PM (3/05/2009)
where does it say force?
i thought it was just an incentive.... i.e. tax refund or whatever
sw 2:48PM (3/05/2009)
Nobody's forcing you to do anything in this case. If you love your junker, keep it.
imoore 3:14PM (3/05/2009)
How about assigned days to drive? Assigned days to shop for food, etc.? Ban all forms of home schooling and demand that children attend only public or private school?
Just give our elected officials time, I'm sure they'll come up with something. No jokes here.
Mel. R 3:32PM (3/05/2009)
Living in a state that has mandated DOT inspections, I can say that they do not keep "junkers" off the road.
catgirlshyla 7:01PM (3/05/2009)
Wait, doesn't the UK already have the MOT Test, or did they scrap it and cars like what Onslow drives in Keeping Up Appearances managed to survive?
dc11 2:49PM (3/05/2009)
Although I don't want an american car, I think if the US were to do this, they should restrict the voucher to only domestics... to help the economy and all.... I'm in the market for a new car right now, and ideally I'd like this to go towards ANY new car purchase... but economy comes first.
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sw 2:52PM (3/05/2009)
It should be a car built in America. Not an American car built in Mexico.
Erik 2:57PM (3/05/2009)
And not one who's purchase would funnel the profits out of the country to a foreign corporation.
dwaltr 3:10PM (3/05/2009)
Then every other country would do the same thing and nobody would see any overall sales increases. If you want to buy a American brand car then do so, don't try and force others to follow you. That's not how competition works. I own to Fords and I didn't buy them only because they are American. I actually liked them better than the foreign brands that I tried.
John 3:26PM (3/05/2009)
It will never happen. The foreign companies will cry foul.
Besides most of our fine American politicians and public servants drive imports anyways. Ever look at what's driving around DC?
m 4:23PM (3/05/2009)
As soon as we start "buy American" incentives or worse yet requirements, other countries will start to do the same. Once you freeze international trade, LOTS of American companies are doomed. We tried that in the 1930s. The result was the Great Depression. The world is more connected now than ever before. We're working in a world economy. If we build walls around ourselves, we will fail.
Peza 3:09PM (3/05/2009)
Yes protectionism is the best way to fight a recession in a globalized world. But who would buy an american car even if it costs 2500€ less.
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TomdeTomTom 3:29PM (3/05/2009)
I would. The Ford Fusion Hybrid is a great car. Add $2500 to the $3400 tax credit and you have a price on par with a base model Prius!
dwaltr 3:11PM (3/05/2009)
Sorry for the poor spelling in my previous post. It's already been a long day.
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