Alistair’s scrappage scheme creates automotive jobs

The Automotive industry will benefit immensely from the government’s scrappage scheme by directly creating more UK jobs and boosting sales on new cars.

The scrappage scheme was announced by Chancellor Alistair Darling in last month’s budget and gives UK citizens, who own vehicles ten years and older, £2000 off on the price of a new car when they trade-in the old one.

According to the Society of Motor Manufacturers and Traders (SMMT), motor companies have already seen improvement in sales.
 
Chief executive at SMMT, Paul Everitt, said that the scrappage scheme "is good news for consumers and the UK motor industry alike. It has already started to get people back into showrooms to kick-start demand in the market".

It is only likely that an increase in these new car sales could create more automotive jobs.
 
Nissan said they will create 150 contract jobs in June and a spokesperson for them said that the “cash for scrap” scheme could lead to 14,000 extra new Nissan cars being sold.

Small car sales will inevitably benefit most from this scheme as they are reasonably priced and more economical.

Ford boasts with more than 3,000 orders and Honda with 900 since the scrappage scheme has been announced.

A spokesperson for General Motors exclaimed that they "remain confident that this will be a big help to the industry at what is a difficult time".

Mr. Darling’s scrappage scheme has already received negative criticism. But shouldn’t a plan that encourages sales and increases UK jobs be given a fair try before it gets pessimistic remarks?

This initiative isn’t a new one conjured up by the UK government because a similar scheme has taken affect in Europe since the start of the recession. Germany, in particular, delivered excellent results from it.

Interested motorists must make sure that their trade-in cars have been owned by them for a minimum of one year. These cars must also have been registered in the UK before July 31st 1999 and have a recent MOT certificate.