Scrappage hope for car-sales boost

While the Government's "cash for bangers" car-scrappage scheme may offer a glimmer of hope, the wheels are still falling off the production lines.

April figures show the numbers down by 55.3% to 68,258 compared with last year, and it was even worse for commercial vehicles, down 65.2% to just 7,655.

The Society of Motor Manufacturers and Traders (SMMT) reports total car production for this year down 56.2%, and 63.6% for commercials.

But said an ever-hopeful SMMT boss Paul Everitt: "With the scrappage incentive scheme fully operational, industry is optimistic about the positive impact this will have on the market and on UK production facilities.

"Despite the current difficulties, the UK must prepare for the return of global growth, and government support for the industry is an essential part of the process."

The scheme gives £2,000 to owners of cars and light vans more than 10 years old when they trade them in them for a brand new one.

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