Scrappage scheme a real success

The government has released figures which it claims show that its scrappage scheme has been a "real success". According to the statistics, there have been 154,927 new vehicle orders since the initiative was launched. The Southeast has had the highest take up, accounting for 18 per cent of these.

Lord Mandelson, the business secretary, commented: "I'm pleased that we have already achieved over 150,000 new car orders. This is a great deal for manufacturers and dealers, not to mention the customers." He added that the initiative has contributed to a 13.5 per cent rise in car manufacturing.

Is the scrappage scheme green?

Scrappage schemes are often described as environmentally friendly because they get older vehicles off the road by scrapping them and replacing them with the latest models, but studies have found that these schemes have a relatively high cost per tonne of pollution avoided.

The Organisation for Economic Cooperation and Development found that “these schemes have a high average cost per ton of pollution avoided, and do not compare favourably with other alternative policy tools on purely environmental grounds."

The British scheme overlooks the environmental impact of scrapping the old car and building the new one.

Economists predict a slump in demand for car once the scrappage scheme comes to an end.

How will the scrappage scheme work?

To prevent people from taking advantage of the scrappage scheme by buying an old banger in order to then trade in the money, applicants must have been the registered keeper of the car that is due to be scrapped for at least one year. The scheme will run until March 2010.

Car scrappage - a waste of perfectly good cars

When no limit on the CO₂ emissions of the new model is set, It means that in theory someone who scraps a 1999 Volkswagen Lupo TDi 3L, (81g CO₂/km) and buys a 2009 Porsche Cayenne Turbo (358g CO₂/km) would receive the taxpayer-funded payment.

There are scrappage schemes already in place across Europe. The German campaigning organisation VCD has been encouraging members of the public to scrap an old car, but then request a subsidy towards a rail season ticket or a new bicycle. So far over 5000 people have taken part and sent applications to the government, which has responded by threatening legal action.

Which car manufacturers are taking part in the scrappage scheme?

The manufacturers who have signed up to take part are: Allied Vehicles, Bentley, BMW, Chevrolet, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Rolls Royce, SAAB, SECMA UK, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo, Koelliker UK Ltd, Iveco Ltd, Chrysler, Renault Trucks UK Ltd.

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