KPMG Welcomes “Steady Injection of Government Support”

Following business secretary, Peter Mandelson’s announcement that the UK government will be extending its car scrappage scheme to February 2010, as well as including van owners in those eligible for scrappage discounts, the auto director at ‘Big Four’ professional services firm, KPMG has said that he welcomes the government’s support for the industry:

“The announcement by business secretary, Lord Mandelson to continue with the scrappage scheme in the UK will be a welcome boost to the automotive industry as a whole and will increase short-term confidence by delaying and minimising the uncertainty over future car volumes,” stated Marc Summers.

“OEMs and suppliers here will continue to benefit from the scrappage scheme until the automotive industry can firmly stand on its own feet again. The asymmetric benefit of the scrappage scheme has meant that OEMs with small-eco cars have benefitted and those who have been successful will be hoping that the long-term benefit of the scrappage scheme will produce a new generation of customers who are brand loyal for many years.

“In the meantime, it will take several years for new car sales to return to something approaching pre-credit crunch levels. What the auto industry needs is a steady injection of support through government schemes which will allow it to stabilise and pick up momentum.”

Related News: Government Extends Scrappage Scheme to Include Vans