UK car industry going from strength to strength
The UK car industry last month reported a 31.6% increase in like-for-like sales compared to the same period last year. This is a massive increase and ultimately down to the UK government's car scrappage scheme which has now been extended and has actually proved to be very successful. So what next for the UK car industry?
While there is no doubt that the extension to the UK government's car scrappage scheme has been welcomed by consumers and businesses alike, there are concerns about what will happen to the industry when this particular crutch is taken away. There is no doubt that while the industry itself would appear to have picked up a little, the vast majority of the increase is because of the car scrappage program. The government will have a very difficult dilemma in 2010 when the scheme is set to end because at the moment it would appear to be supporting the whole of the UK car industry.
A further extension to the scheme, possibly done in the name of the Green Revolution, would attract criticism that other areas of the UK economy have not received like-for-like assistance. This is an issue which has been ongoing for some time and one which has annoyed business leaders and business owners.
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