Thursday, August 20, 2009
Lookers wants scrappage extension
UK car dealer Lookers has said it wants to see the government's car scrappage scheme extended into next year.
Under the scheme, which was launched in May this year, a £2,000 incentive is paid to motorists who hand over their old cars and buy new models instead.
The dealer called for the extension as it announced first half-yearly profits of £8.6m, down from £13m last year.
Lookers said the scheme had helped performance, but it remained cautious on its outlook for the new car market.
"The scrappage scheme has helped, and we would like it to continue into next year," said Lookers' chief executive Ken Sturgenor.
"We have had around 3,500 orders from it so far, 55% of which have been delivered."
Sales up
Revenue at the dealer for the first six months of the year came in at £870.4m, compared with £1bn for the same period last year.
Demand for new cars fell, but "used cars, parts and after-sales are going really well," Mr Sturgenor said.
On Monday, car dealer Pendragon also called for an extension to the scrappage scheme.
It is currently due to end in February, or when the £300m the government has allocated towards the scheme runs out - whichever happens first.
Last week, official figures showed that more than half of the funds had been used up.
The scheme is credited with boosting UK car sales by 2.4% in July compared with the same month a year earlier, the first rise in car sales since April last year.
DATED: 20.08.09
FEED: AW
