The UK Motor Industry and Car Delivery Companies

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“…scrappage scheme will just benefit foreign companies”

The UK motor industry has been grabbing headlines over recent months but among the coverage has been a great deal of inaccurate theories and perceptions. The Society of Motor Manufacturers and Traders has developed as a portal to gain truthful insight into the UK automotive sector.
Below are a selection of the inaccurate comments we have seen about the industry and the detail needed to help separate the fact from the fiction.

“A scrappage scheme will just benefit foreign companies as most of the cars sold in the UK are imported”

Fiction: A scrappage scheme will just benefit foreign companies as most of the cars sold in the UK are imported.

Fact: Automotive is a global business and the UK will benefit from global demand and support.

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The introduction of a scrappage scheme is about boosting demand for new vehicles in order to kick-start the market. 75% of vehicles made in the UK are exported, generating significant revenue. 67% of vehicles sold in the UK are from manufacturers that also produce engines and vehicles here too.

All major vehicle manufacturers invest and create employment in the UK and as a global business, demand stimulated by one economy will have benefits elsewhere. The German scrappage scheme has resulted in increased demand for vehicles produced in the UK as well as an increase for the number of engines which are produced here and exported. The UK sector will benefit from a co-ordinated approach across Europe and support for the scheme will encourage continued inward investment.

Looking at the UK’s best selling vehicle in 2008 – the Ford Focus – 75% of the engines that went into those vehicles, were produced in the UK. By stimulating demand for new vehicles we will support all parts of the sector from design and development through to sales and service.

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