In today's budget, the Chancellor of the Exchequer, Alistair Darling has introduced a scheme which is already popular in Germany and Spain called 'Scrappage'. The scheme will run until March 2010 - a one-year window, if you like. It is intended to boost the motor manufacturing industry in this country.
Drivers who are thinking of buying new cars can get a £2000 discount if they traded it in for a car that is 10 years old or more. Mr Darling (the joker that he is) said that he wanted to help the UK motor industry "which has been one of Britain's success stories". However, on closer inspection there are only two or three specialist carmakers in Britain - the likes of Morgan, TVR and perhaps Rolls-Royce, none of which were particularly 'fuel efficient' and so he has had to open up the market to cars which are made in Britain in a bid to safeguard British jobs, albeit through foreign manufacturers.
Unbeknown to Alistair Darling, Tata, the Indian car manufacturer, have been producing the world's cheapest car at Longbridge since September last year and they already have a stockpile of several thousand units. The Tata Nano is a mere £1,300 and as a result, people are inundating Tata dealerships, clamouring to buy one in the hope of getting your their hands on not only a new car, but £700 too.
A spokesman from Tata told In Seine News; "Since the budget, we have already taken orders for a 90% of our stockpile and simply cannot produce cars at that price. On paper we are already on the verge of bankruptcy!"