Quote of the Day: The International Language of Clunker Edition

Edward Niedermeyer
by Edward Niedermeyer

The Government should urgently re-evaluate the planned discontinuation of the Scrappage Scheme in order to avoid a sudden, pronounced and damaging fall in business.

So says Adrian Rushmore of Glass’s Automotive Business Intelligence in a company press release (via theautochannel.com). But . . .

Unlike other scrappage schemes operating across Europe, there is little or no prospect of our scheme “pulling forward” new business, only to suffer an immediate decline when it is withdrawn, and the used car market will be similarly unaffected.

So why the worry? Incidentally, Britain’s “clunker” scheme was budgeted at $500m, and pays about $1,600 per vehicle. Because the government requires manufacturers to match their rebate, the consumer savings are actually closer to $3,200. And the program is practically revenue-neutral, thanks to the uptick in Value Added Tax (VAT) receipts. But the used car market? The WSJ claims America’s cash for clunker program is actually driving used sales. Monroe News says used dealers hate it. It’s a big country. After all, one billion only gave us four days of scrappage.

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Join the conversation
4 of 5 comments
  • MadHungarian MadHungarian on Aug 04, 2009

    They sell (correction, attempt to sell) Sebrings in the UK? How embarrassing. Now that the US government partially runs Chrysler, couldn't we put a stop to that? It is only due to the long-sorry state of the British motor industry that anyone could possibly have a car they would consider scrapping in favor of a Sebring.

  • Jonotron Jonotron on Aug 04, 2009

    The sales of Sebrings are unlikely to be any more than double figures for the whole uk market. You are more likely to see a cadillac (i've seen three, as opposed to one sebring). Come to think of it, Grand Voyagers used to be a regular sighting and I don't recall seeing a single new model (08-09). Taking a look at the performance specs on the chrysler UK website, I realise why. Their UK lineup is way less than competitive in any terms!

  • Patrickj Patrickj on Aug 04, 2009

    @MadHungarian The U.S. also exports the Jerry Springer show for worldwide viewing, doing far more damage to our international reputation than the Sebring.

  • Ctowne32 Ctowne32 on Aug 05, 2009

    You're misreading the ad. They're offering to scrap the Sebrings. At least I hope that's what they're doing.