 has announced a new scrappage scheme, offering up to £2000 for some models.){kind=link}
In an attempt to achieve cleaner air quality, Ford (NYSE:F) has announced a new scrappage scheme, offering up to £2000 for some models.
Any vehicle that was registered before the end of 2009 qualifies for the new scheme. Ford, unlike BMW (ETR:BMW) and Vauxhall, will also accept petrol cars.
“Ford shares society’s concerns over air quality. Removing generations of the most polluting vehicles will have the most immediate positive effect on air quality, and this Ford scrappage scheme aims to do just that,” said Andy Barratt, chairman and managing director of Ford of Britain.
“We don’t believe incentivising sales of new cars goes far enough and we will ensure that all trade-in vehicles are scrapped.”
The scrappage scheme will also help sales of the new models, as demand is facing a continued drop. New car registrations hit the fourth consecutive drop in July this year. Ford hopes the scrappage scheme will see this number rise, as people replace older cars with more clean models.
There is also worry that the government will clamp down on diesel cars in the future.
“People are worried about the residual values of their diesels; some analysts think the share of the diesel market could be as low as 15% by 2025,” said David Bailey, professor of industrial strategy at Aston University.
“There’s a sense that we’ve had peak diesel – it was a wrong turn. Car companies are going to have to take action.
“UK sales have been down in the last few months, partly as the market was over trading before, with a lot of financial innovation around [car loans] – and now of course there is an effect from Brexit, both from currency depreciation and an impact on real incomes.” he added.
Anna Heslop, ClientEarth lawyer, said: “It seems the motor industry is finally waking up to the damage dirty diesels are doing to our lungs as well as their own reputation.”
“What we need is a thought-through, coherent strategy from government to help people to move to cleaner and more sustainable technology.”