Monday, April 20, 2009

Motor sector requires short term boost, says RMIF

'Government backing will be crucial for the growth of the electric car market in the UK over the next few years, but more immediate measures to help the industry such as the introduction of a vehicle scrappage scheme are required to boost new car sales in the current economic downturn,' said Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing 8,000 retail motor sector businesses that sell new and used cars, commenting the announcement of an electric car strategy yesterday (Thursday 16 April 2009). The Government's £250 million strategy to support the growth of the electric car market, and the necessary infrastructure to support it, includes an incentive scheme that will offer motorists £5,000 to buy electric or plug-in hybrid cars. The plan is expected to be activated in 2011. Robinson continues: 'This scheme could help the UK build the infrastructure and market for electric cars, but in the short term the industry needs more direct support. With consumer confidence low, the adoption of a car scrappage scheme would give a boost to the new car market, and enable motorists to trade in their old cars for new, less polluting vehicles. Consumers will look to new cars again, given the right impetus, and the RMIF is continuing to lobby for the introduction of a scrappage scheme could help revive car sales, and remove high-polluting cars from the road at the same time. This scheme is widely supported by car retailers.'

DATED: 20.04.09

FEED: AW





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