THE Government’s much discussed car scrappage scheme which came into effect this week has been welcomed in Solihull.
Announced in the recent Budget, the initiative gives a £2,000 discount to people who swap a car over ten years old for a newer model.
And although the scheme has drawn criticism in some quarters, one local car dealer said yesterday that the idea has already been good for business.
Phil Watson, sales manager at Solihull Volkswagen, said: “It’s a great idea and we’ve already had some success.
“I’d say we’ve had nine or ten orders during the first few days - as a direct result of the offer - and we’ve had enquiries every day. It’s certainly proving good for the product and good for business. There are people who have come to buy one of our cars who wouldn’t have been able to without the offer.”
Yesterday the Birmingham Chamber of Commerce and Industry said that the scheme would benefit the industry but it wasn’t a cure for the motor industry’s current problems.
Katie Teasdale said: “The car scrappage policy will help suppliers in the region and stimulate sales for car dealers. It will also boost demand and have positive environmental benefits.
“However, 80 per cent of cars are imported to the UK so while this is helpful it is not a magic bullet.”