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British 'Cash For Clunkers' to get extension
We've seen this before, haven't we? Government institutes program to spur auto sales by offering car buyers a federal incentive to turn in an old car for a shiny, efficient new one, leading to sales growth, which later leads to no money in the program and the request for an extension. Our British friends across The Pond are reportedly looking to provide an extension to its version of Cash for Clunkers, which allocates £2,000 (nearly $3,200 USD) towards a new vehicle when a vehicle 10 years or older is turned in. The British version of the program contained only £300m in funds (around $477M) and it began way back in May.
BBC News is reporting that Lord Mandelson and the UK government is extending the program, noting that the island's economy was on the upswing but growth in manufacturing is still fragile. Labor unions, the auto industry, UK Steel, the Manufacturing Technologies Association and British Plastics Federation have all been requesting that the program be extended, as steady vehicle sales mean more stable job situations. Beyond the UK's version of Cash for Clunkers, Lord Mandelson has reportedly also said that the government will stand behind workers at Vauxhall, Jaguar and Land Rover plants affected by the auto industry slowdown.
[Source: BBC News | Image: Matt Cardy/Getty]
Reader Comments (Page 1 of 1)
dukeisduke 11:32AM (9/28/2009)
Another crappy Rover bites the dust.
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Rob 12:38PM (9/28/2009)
Actually, the car in the pic, a Rover 600, was the most under rated and probably best Rover produced in the last 20 years of that company's life. (Disclaimer - I used to own one!)
It was a thinly disguised early 90s Honda Accord, with Rover wood,leather and chrome trim that was initially 'designed' in the late stages of Rover's collaboration with Honda.
It used (mostly) Honda engines. The 2.3 litre 4 pot in my old 623 GSi even left the Honda badging on the engine rocker cover. My car was 10 years old with nearly 100K on the clock when I sold it. It was close to immaculate condition (despite the 5 years of neglect it suffered in my hands :-) ), returned over 35mpg (UK gallons) on the motorway at 80+ mph, and never let me down once. I did have it serviced at the 12K intervals though.
Unfortunately it was introduced at about the same time that BMW took over Rover, and the 600 was a genuine, and cheaper, competitor to BMWs 3 series. Unsurprisingly, BMW failed to promote the car nor do any development on it.
Bloke 12:46PM (9/28/2009)
"Another crappy Rover bites the dust."
That's a Rover 600, and as a former owner of one it was an excellent machine. It was basically a rebodied European Honda Accord and built on the same production line.
TonyInMI 11:51AM (9/28/2009)
Did that exhaust come from a pluming store?
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TonyInMI 11:52AM (9/28/2009)
eh plumbing
Rob 12:35PM (9/28/2009)
The UK Govt are making money from the scrappage scheme. They're only putting £1K into the deal, the other £1K is coming from the manufacturer.
The average price of a car sold on the scrappage scheme, after the allowances is around £9K. The taxes the govt get on that 9K far exceed the £1K they put in in the first place (in the UK sales tax is national, as is new car tax). Estimates claim that they'd made over £110 million 'profit' (after deducting the scrappage allowance) up to the end of August this year. Of course they want the scheme extended, it's a money spinner.
Cynical, moi?
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jamie 1:05PM (9/28/2009)
How long does the stupid government think it can bolster the economic picture by offering handouts to spur invisible growth?
Get Real! This is the new economy and there will be no recovery...not for a very long, long time.
The dollar has about c*apped out, and everybody is screaming for a new world reserve currency to replace it. Bernanke said the real economic problems will start to emerge in the next 6 to 16 months.
By offering cash incentives we are only delaying the inevitable and digging ourselves deeper in the hole. When the cash incentives stop, so will the economy.
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Epsilon-Not 1:44PM (9/28/2009)
The British government is destroying the dollar?
Andrew 2:00PM (9/28/2009)
I find it strange that you Americans are all up in arms about the cash for clunkers program, in my country we've had this kind of program for DECADES...
Keep the trash off the road, safety first.
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