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]

Share This Photo X