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Government rules out scrappage scheme

The Government confirms there are “no current plans” for a scrappage scheme to revive sales of new cars.


scrappage scheme ruled out feat

A Government spokesperson told Auto Express:

“We have no current plans to change the existing incentives or to introduce a scrappage scheme. We are committed to building a greener transport system and reducing carbon emissions to reach our goal of net zero by 2050.”

Previous reports suggested the Government considered offering up to £6000 for motorists to switch to EVs or HEVs from petrol and diesel vehicles, but ministers have quashed such rumours.

Due to the COVID restrictions, new car sales were down 89 per cent in May and according to the figures released on 26th June by the Society of Motor Manufacturers and Traders (SMMT)UK car manufacturing output fell -95.4% in the same month with just 5,314 vehicles rolling off production lines. There were hopes of some form of incentive to turn the decline around.

According to the article, critics pointed out that scrappage schemes are wasteful. It removes serviceable cars from the road and makes cars for young drivers harder and more expensive to find. Others argue that scrappage schemes stimulate the economy and encourage the purchase of cleaner vehicles.

Andy Barett, Ford of Britain Boss, told Auto Express:

“Any degree of stimulus has to be fair to the industry – it’s got to be fair to all.” He added: “You can’t just stimulate the low end – and when you think about our manufacturing base in the UK there’s quite a lot of high-end business that comes out of the west midlands – so you’ve got to have something that’s fair to all the industry. It can’t be pro-the high end, and there’s got to be a degree of stimulus for the whole industry.”



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Adam Hewitt

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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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