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| Ford suspends start of car scheme | Ford suspends start of car scheme |
| (19 minutes later) | |
| Ford has delayed the start of its involvement in the UK car scrappage scheme and suspended deliveries of vehicles to dealers. | |
| There were a number of matters to be resolved about the scheme, including the VAT arrangements, Ford said. | There were a number of matters to be resolved about the scheme, including the VAT arrangements, Ford said. |
| The Society of Motor Manufacturers and Traders (SMMT) said it was seeking to clarify the exact tax position. | The Society of Motor Manufacturers and Traders (SMMT) said it was seeking to clarify the exact tax position. |
| Cars that are more than 10 years old can now be scrapped in return for a £2,000 discount on a new model. | Cars that are more than 10 years old can now be scrapped in return for a £2,000 discount on a new model. |
| "Ford has been part of negotiations between the government and all vehicle manufacturers on the vehicle scrappage scheme announced in last month's Budget," a Ford spokesman said. | |
| "Based on details which have only become apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues." | |
| However Ford added it remained committed to the scheme and was confident it could begin sales "within a few days". | |
| 'Industry boost' | |
| Business Secretary Lord Mandelson has said the £300m scheme would "provide a boost to the industry and kick-start sales". | Business Secretary Lord Mandelson has said the £300m scheme would "provide a boost to the industry and kick-start sales". |
| But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. | But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. |
| New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. | New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. |
| In terms of shifting new cars it's not going to do as much as hoped Kieran Puffett, editor of car price guide Parker's Send us your comments Read a selection of your comments | In terms of shifting new cars it's not going to do as much as hoped Kieran Puffett, editor of car price guide Parker's Send us your comments Read a selection of your comments |
| Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. | Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. |
| "There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's. | "There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's. |
| "An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car. | "An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car. |
| "They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped." | "They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped." |
| However, the British Chambers of Commerce (BCC) welcomed the initiative. | However, the British Chambers of Commerce (BCC) welcomed the initiative. |
| "A scrappage scheme is exactly the sort of policy we need during a recession. It will boost demand and help the environment at the same time," said the BBC's director general David Frost. | "A scrappage scheme is exactly the sort of policy we need during a recession. It will boost demand and help the environment at the same time," said the BBC's director general David Frost. |
| 'Flood of enquiries' | 'Flood of enquiries' |
| Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. | Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. |
| Manufacturers will provide at least a similar discount, and so far 38 have signed up. | Manufacturers will provide at least a similar discount, and so far 38 have signed up. |
| In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers Edmund King, AA president | In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers Edmund King, AA president |
| Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. | Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. |
| Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". | Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". |
| Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. | Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. |
| And it said that even if only 1% of motorists took it up, it would be over-subscribed. | And it said that even if only 1% of motorists took it up, it would be over-subscribed. |
| The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. | The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. |
| President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." | President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." |
| He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. | He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. |
| But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". | But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". |
| "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." | "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." |