Ford And Honda Confirm Participation In Scrappage Scheme

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Thu, 21 May 2009

Carmakers Ford and Honda have announced they will join the UK scrappage scheme after resolving their dispute with the Government over VAT payment arrangements.

Ford had stopped deliveries of pre-ordered cars to its dealerships and Honda had told its dealers to suspend registrations for new vehicles under the scheme until the issue had been resolved.

As well as disagreements with the Department for Business, Enterprise and Regulatory Reform (BERR) over the method of calculating VAT payments, there were also concerns on the way in which the manufacturer's £1000 contribution is paid.

However, Honda has now confirmed it will enter the scheme "following discussions between industry and Government yesterday and clarification on the finer detail".

Nigel Sharp, Ford's managing director for Great Britain, also confirmed the manufacturer would join the scheme .

"Ford is putting its full weight behind the UK vehicle scrappage scheme, which will not only boost sales, but will also bring positive employment and environmental benefits too," he said.

The company revealed it had taken 3000 new orders from first-time customers since the scheme came into effect earlier this week (May 18).

According to the Society of Motor Manufacturers and Traders (SMMT), 35 car manufacturers (excluding Honda and Ford) have confirmed their participation in the scrappage scheme .