Despite reports of a recovery in the
car industry last week, some experts caution that green shoots
could be artificially inflated, with no real benefits to
manufacturers in the UK.
According to skeptical reports in the
car finance news, only four of the top
car sellers under the
scrappage scheme have UK manufacturing bases, whilst many of
those benefiting are from Korea and Japan.
The boss of the SMMT (Society of
Motor Manufacturers and Traders), Paul Everitt, reportedly
commented: Industry still faces a long road to recovery and
we urge government to take action to sustain economic recovery
through easing access to
finance and
credit and delivering the
loan guarantees set out by the Automotive Assistance Programme
(AAP).
The question remains – what happens when the
scrappage scheme comes to an end? Although this is scheduled
for March 2010, the
money could run out much earlier.
