The downturn in new car sales has hit the industry very badly
Some would suggest that a car scrappage scheme could be highly beneficial in reviving an otherwise struggling sector of our economy. Trials of such schemes have reaped huge benefits in terms of income for the manufacturer and also a rise in employment figures for supporting and related businesses such as interior manufacturers.
Whilst these plans are often seen as highly controversial they are extremely engineered to produce a sudden spike in sales. Given that the UK maret has dropped no less than 59% it's little wonder these schemes are seen as something of a beacon of hope.
When we look at actual figures for the UK, we can see a year on year drop in march of no less than a third. This naturally causes concern among those who are employed in the industry, but also those who rely on this period of new registrations to bolster their order books and provide a glimmer of hope until November when the process commences again.
Recently a showcase from the UK Government it was decided to pump some £ 2.3bn in finance directly into the heart of the manufacturing process by way of a loan assistance program. Other incentives include a green scheme to reward selected manufacturers to develop more eco friendly cars with the ultimate long term aim of saving both money and the environment.
Quite often manufacturers will provide figures on economy and other targets such as how much of the vehicle can be recycled, but unfortunately these claims are often given poorly press and quite shake the foundations of what should be a vibrant contributor of benefit to the Worlds eco system .