The much lauded scrappage scheme may not have been quite the saviour of the UK motor industry than perhaps it might have been.
Word is reaching us that many manufacturers and their dealerships are being hit with big demands for money from the government seeking to claw back funds for what it calls “non-compliance”.
It could very well be the case that some manufacturers will eventually have to pay back millions of pounds to the exchequer should the paperwork not be quite up to scratch.
If you recall there was a £1k contribution from the then Labour government matched by a £1k contribution from the manufacturers and it seems that in their quest for saving money the coalition government are looking to potentially renege on paying in full the agreed amounts. As a result car dealers, who have probably already taken the profit, are being asked to pay money back where there has been a “failure to follow procedure”. Perhaps worse still, according to one of our sources, there seems to be no appeal process.
If this turns out to be as widespread as feared then there will be some businesses seriously out of pocket and dealers, especially from the big winners like Kia and Hyundai who were the scrappage heroes during the scheme, may well regret ever hearing the word scrappage.
Now with worsening economic conditions and the imminent rise in VAT not to mention the terrible weather this is not exactly the Christmas cheer the trade needed.
Still at least customers are not being penalised. Yet!
Subscribe to Motor Trade Insider by Email