Quotas set for scrappage scheme (From Penarth Times)

Quotas set for scrappage scheme

3:50pm Monday 25th January 2010

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THE GOVERNMENT is to introduce a quota system to motor manufacturers for the rest of its car scrappage scheme after revealing that more than three quarters of the £400 million budget has been used up.

Funding for fewer than 82,000 new vehicle orders is left for motorists, with the money due to run out at the end of February. The Business Department said it will allocate order quotas to manufacturers, based on brand popularity, in a bid to help ensure a "smooth closing" of the scheme.

New figures showed that 318,628 new vehicle orders have been taken through the scrappage scheme, under which buyers receive a £2,000 grant for trading in an old car for a new model.

Business Secretary Lord Mandelson said: "I'm pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time.

"With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.

"Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes."

A regional breakdown showed the scrappage scheme has proved most popular with car-buyers in the South East, followed by the East of England, the North West and South West, the Government said. The scheme accounted for one in five of all new car registrations in December.

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