F&I Management & Training

Bosses at Nissan's Sunderland plant have cautiously welcomed plans to offer car owners £2,000 to trade in their vehicles for new ones. The chancellor unveiled the scheme, in which cars more than 10 years old would be scrapped in return for the discount, in his budget on Wednesday. Trevor Mann, Nissan Europe Senior Vice President, said it was a positive move. But he raised concerns about the financial contribution expected from already cash-strapped manufacturers. To benefit from the scheme, a buyer must have been the registered keeper of the car that is due to be scrapped for at least 12 months. Half the discount would be paid for by the government, with manufacturers contributing the rest. 'Very valuable' Almost 5,000 people work at Sunderland's Nissan plant, making it one of north-east England's biggest employers. But in January, amid the crisis in the motor industry, the firm announced plans to axe 1,200 jobs at the site. Speaking on BBC Newcastle, Mr Mann said: "Overall it's good news, I believe, first and foremost for the consumer - £2,000 off a new car is obviously very valuable." He added: "I think however the scheme puts a lot of the financial and administrative burden on the manufacturers during a very difficult time." Dr Paul Nieuwenhuis, from the Centre for Automotive Industry at Cardiff Business School, said Mr Mann was right to be cautious. It could take more than £2,000 to convince someone who can only afford to run a 10-year-old car to buy a new one, he warned. "Of course they [the industry and dealers] are strapped for cash as well - they can't get loans and things like that. "It might be politically very convenient but I don't know how much practical benefit it's going to have to the industry."

DATED: 25.04.09

FEED: AW