Nissan boost as Lord Mandelson annouces scrappage extension
Sep 29 2009 by William Green, The Journal
THE North East’s car industry was handed a £100m boost yesterday as Lord Mandelson announced the “bangers for cash” scheme is being extended.
Sunderland-based car maker Nissan has enjoyed a sales surge and been able to employ new staff thanks to the UK scrappage scheme and equivalents in Europe.
Last month, the company joined with other automotive firms in calling for the scheme to be extended amid fears that funding could run out within weeks.
A total of £300m was initially put into the scheme, with the car industry and Government jointly funding a £2,000 discount to motorists that trade in cars older than 10 years for new models.
And Business Secretary Lord Mandelson yesterday answered growing calls for the scheme to be extended at the Labour conference in Brighton.
To loud applause, the former Hartlepool MP said: “There are encouraging signs that the economy is picking up. But recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry.”
He added: “Our car scrappage scheme has been so successful the money is running out. The industry has asked the scheme be topped up.
“Conference, we cannot do everything but that does not mean doing nothing. So today I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans.”
Nissan welcomed the announcement by Lord Mandelson, revealing it has accounted for additional units in its production plan.
“Demand generated through the UK scheme and similar initiatives across Europe has also allowed Sunderland Plant to re-hire 350 manufacturing staff on temporary contracts,” said the firm.
