LONDON, Jan 15 (Reuters) - A quota system will be introduced to Britain's car scrappage scheme for its final weeks, the government said on Friday, announcing that more than three quarters of the 400 million pound budget had now been used up.
Order quotas will be given to manufacturers based on brand popularity to ensure a smooth closing of the scheme, which is due to end in February, the Department for Business, Innovation and Skills said.
'I'm pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time,' said Business Secretary Peter Mandelson.
The scheme, introduced by the government last year, gives drivers 2,000 pounds to trade in cars more than 10 years old against a more fuel-efficient newer model.
Earlier this month the Society of Motor Manufacturers and Traders (SMMT) said that since its introduction the scheme had accounted for more than a fifth of all new car sales.
'Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production,' Mandelson said. 'We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes.'
As of Jan. 14, a total of 318,628 new vehicle orders had been taken under the scheme, BIS said in a statement, meaning that funding for less than 82,000 orders remained.
(Reporting by Kylie MacLellan; Editing by Ron Askew) Keywords: BRITAIN SCRAPPAGE/ (kylie.maclellan@thomsonreuters.com; +44 207 542 0401) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Order quotas will be given to manufacturers based on brand popularity to ensure a smooth closing of the scheme, which is due to end in February, the Department for Business, Innovation and Skills said.
'I'm pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time,' said Business Secretary Peter Mandelson.
The scheme, introduced by the government last year, gives drivers 2,000 pounds to trade in cars more than 10 years old against a more fuel-efficient newer model.
Earlier this month the Society of Motor Manufacturers and Traders (SMMT) said that since its introduction the scheme had accounted for more than a fifth of all new car sales.
'Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production,' Mandelson said. 'We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes.'
As of Jan. 14, a total of 318,628 new vehicle orders had been taken under the scheme, BIS said in a statement, meaning that funding for less than 82,000 orders remained.
(Reporting by Kylie MacLellan; Editing by Ron Askew) Keywords: BRITAIN SCRAPPAGE/ (kylie.maclellan@thomsonreuters.com; +44 207 542 0401) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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