Boom for Nissan thanks to scrappage scheme

Jan 23 2010 by Will Green, The Journal

CAR manufacturer Nissan has enjoyed a boom with motorists flocking to buy its Sunderland-built vehicles.

The company has sold almost 20,000 more cars thanks to the Government’s and its own scrappage scheme – with most of the vehicles being built on Wearside.

Some 5,787 Micras, 2,355 Notes and nearly 2,000 Qashqais have been bought between May and this year so far under the Government scheme.

On top of that 8,010 cars were sold under the Nissan scheme offering a £2,000 trade in for all vehicles aged eight to 10 years for cars built in Sunderland.

A Nissan spokeswoman said of the scrappage scheme: “It has been a really big support, but what is good it that Nissan is not overly dependent on it.”

But the scrappage scheme is due to end soon and the worry is that the recent sales and production surge could cease – although there are hopes Business Secretary Lord Mandelson may extend it a little further.

Business minister Ian Lucas said: “The automotive industry has had a difficult year, but industry and Government have taken action to help manage the challenges.

“The £400m scrappage scheme has helped boost demand and even enabled some companies to boost production – like Nissan in Sunderland.

“The end of 2009 saw some exciting developments for the industry in the UK. Vauxhall and Honda began production of their new models, Toyota announced the UK would be the first European plant to produce its first hybrid Auris vehicle, and BMW announced that it will build two new Mini models at its Cowley plant.”