Citroen takes lead on scrappage

Apr 1 2009 Steve Hughes

Citroen takes lead on scrappage

CAR companies could be set to go ahead with their own scrappage schemes of older cars in the UK following a lack of action by the Government.

The auto industry is calling for the Government to fund such a scheme to stimulate new car sales by paying motorists thousands of pounds to scrap older, high-polluting vehicles.

The Government says it is not prepared to go ahead with such a scheme until it has worked out how much it might cost and whether or not it would actually persuade people to buy new cars.

However, the industry says that action is needed immediately and that the Government does not appear to appreciate just how critical the situation is amid rising anger as manufacturers, suppliers and dealers face increasing bankruptcies.

Car companies are so desperate that they say they are now planning to introduce their own scrappage schemes, with Citroen leading the way.

The importer of French cars is giving a blanket £2,000 off the cost of a new model to anyone who agrees to have their trade-in vehicle scraped if it was first registered before 2000.

This is in addition to any other discount deals that may be on offer, such as the current £5,500 off the price of a Xsara Picasso, amounting to a massive £7,500 discount which makes the vehicle virtually half price.

It means that the cost of a C4 family hatchback would be under £8,000 rather than almost £13,000 and the scheme also includes trade-ins registered between 2000 and 2003, which attract a £1,000 discount and do not have to be scrapped to qualify.

Citroen UK managing director Xavier Duchemin, says: ``Rather than wait for a possible Government Scrappage Incentive Scheme, we are rolling out our own.

`` This promotes the replacement of older cars with cleaner, safer and better equipped new ones. The Citroën Trade-In Incentive Scheme gives motorists more reason to throw out the old and save on the new.''

Under the terms of the scheme any cars eligible for the scrappage payments will be crushed at an Authorised Treatment Facility to ensure that the process is carried out in strict accordance with environmental regulations.

The scheme will apply to anyone buying a C4 coupe, hatchback, Picasso or Grand Picasso, C5 saloon and estate, C6 saloon, C8 MPV and the C-Crosser 4x4.

Cars must be ordered by the end of this month and registered before July and the cashbacks and discounts can be used towards a deposit if the vehicle is bought on finance.

Mr Duchemin adds: ``We are pleased to announce that we have seized this proposed government initiative and extended its scope to launch our own Scrappage Incentive Scheme.

``The Citroën Trade-In deal allows us to pass on significant savings to new car buyers and also helps to reduce the number of older, more polluting vehicles on the roads.'

The company says it will now watch with interest to see if other car companies follow its lead and introduce vehicle scrappage schemes of their own.