Aftermarket industry is gearing up for 'scrapping scheme'

The car industry is getting ready for a sales rush on new vehicles after what looks like the iminent launch of a UK vehicle scrapping scheme.

Parties from the motor industry are said to be in advanced talks with the Department for Business and Enterprise Regulatory Reform about a scheme that will subsidise the cost of new fuel efficient, greener cars.

If the program goes ahead it will offer consumers £2000 for their current vehicle providing it is over nine years old, when they buy a new car.

Business secretary Lord Mandelson is said to be in favour of the scheme which is viewed by many as a positive step forward for both the environment and the economy.

A similar scheme has been running in Germany since January which saw the German government make €1.5bn available to encourage consumers to purchase new cars. The response so far has been very positive with new car sales up over 21% in February, and 600,000 more new vehicles expected to be sold throughout 2009.

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