Quota system to be introduced for “smooth closing” to scrappage scheme

Motor manufacturers are to have a quota system imposed by the Government for the remainder of the scrappage scheme after it was disclosed that more than three quarters of the £400 million budget has been used up.

This means funding for fewer than 82,000 new vehicle orders is left, with the money due to run out by the end of February 2010 with a total of 318,628 vehicle orders have so far been taken under the scheme.

The Department for Business says it will allocate order quotas to manufacturers, based on “brand popularity” to help ensure a ‘smooth closing’ of the scheme.

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.”