While the UK’s scrappage program has been highly popular, it hasn’t helped domestic car producers much since most Britons prefer to buy foreign-built models. According to the figures released by the Society of Motor Manufacturers and Traders, British new-car sales rose 31.6% to 168,942 last month compared with the year before but then local car production fell 6.75%.

Launched earlier this year, the British government’s scrappage scheme gives drivers 2,000 pounds ($1,600) to trade in cars more than 10 years old for a more fuel-efficient new model. Car production was 38.1% lower than a year ago. There was a decline recorded in October but it is the smallest monthly drop this year. Paul Everitt, SMMT CEO, said there are signs that the world economy was pulling out of recession. He still thinks though that next would remain challenging. Even as the scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, he expects 2010 to be “another difficult year for the industry.”

[via autonews]

Tags: car news, uk scrappage program, uk scrappage program fail, ukscrappageprogram

This entry was posted on Sunday, November 22nd, 2009 at 4:51 pm and is filed under 2009, 4wheels News, U.K., Year, Zone. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.