Wednesday, August 19, 2009
Pendragon urges scrappage renewal
UK car dealer Pendragon has said it wants the government's car scrappage scheme to be extended into next year.
Under the scheme, a £2,000 incentive is paid to motorists who scrap cars registered before 31 August 1999 to buy a new car.
Pendragon chief executive Trevor Finn told the BBC the scheme had led to a "positive effect" on car sales.
His comments came as Pendragon reported half-year pre-tax profits of £11.4m, down from £21.1m last year.
"The first half of 2009 has seen a very challenging car market," Pendragon said.
But the company added: "The new car market has risen for the first time year on year in July which gives us reason for some guarded optimism in this area."
'Successful' scheme
The UK car scrappage scheme is currently due to end in February, or when the £300m the government has allocated towards the scheme runs out - whichever happens first.
"It may be continued into the spring, and we'll be pushing for that," Mr Finn told the BBC.
"I think there's a probability that it will be renewed," he added. "It's been very successful from the government's perspective."
The scheme - which came into effect in May - is credited with boosting UK car sales by 2.4% in July compared with the same month last year, the first rise since April last year.
DATED: 19.08.09
FEED: AW
