Renault chief operating officer Carlos Tavares has called on European governments to reintroduce scrappage schemes or “other market subsidies” to boost car demand.
Tavares told Reuters he would like to see support for the European and French automotive markets.
Several dealers have also told AM they would like to see the scrappage scheme reintroduced as they describe it as “cost neutral” due to the VAT the Government makes back on the scheme.
Dealers sold over 330,000 units under the scrappage scheme in the UK which started in April 2009 and offered a £2,000 discount (£1,000 from manufacturers and £1,000 from the Government) on a new car.
Research from Glass’s at the time showed that the vast majority of scrappage scheme sales were not the “pull forward’ sales many in the industry had feared.
According to the research, more than 90% of new cars bought under the scheme were sold to customers who would not otherwise have bought a new car.
Fewer than 10% of customers who bought under the Government-backed scrappage scheme said they planned to buy a new car in future years.
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