Extended scrappage scheme to prepare automotive jobs

Automotive jobs in manufacturing will have an extra month to pepare before the end of the scrappage scheme.

According to BBC News, the government has extended the time frame for the scrappage scheme but will unfortunately not add additional funding as well.

The government commented that the extension will allow manufacturers “more time to prepare for and operate the exit phase of the scheme”.

The scrappage scheme was introduced last May and offered drivers of cars that are 10 years or older an opportunity to get £2,000 off a newer model. Half of the grant is subsidised by the government and the other half by the specific car dealer.

Initially the government supplied £300m for the scheme but increased its funding to £400m.

The funding allowed 400,000 residents to buy 400,000 new cars.

Currently 330,000 cars have been ordered leaving 70,000 vehicles before the scheme ends.

Business Secretary Lord Mandelson, commented on the effect the scheme has had on the economy and jobs in the industry. He said: “Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.

“If you're considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited.”