Following in the footsteps of Germany, France and Italy, Great Britain has announced its own scrappage incentive program for older vehicles. The British government predicts the new program could bolster new car sales by as many as 300,000 units over the next 10 months.
According to Automotive News, the program will offer owners of vehicles 10-year or older 2,000 pounds towards the purchase of a new vehicle. Half of the 2,000 pounds will be supplied by the British government, with the remaining 1,000 pounds set to be made up by dealers or manufacturers.
In all the British government has allocated £300 million for the program, with a scheduled end date of March 2010. However, the program could run longer if funds hold up.
The news of Britain’s scrappage program could put more pressure on the U.S. government to pass similar measures. Germany, France and Italy have all seen early success with their scrappage programs, with sales up in all three countries. In contrast, first quarter U.S. sales were down nearly 40 percent.
