THE UK car scrappage scheme has been extended by Lord Mandelson to include an additional 100,000 cars.
The move, announced by the Business, Innovation and Skills Secretary at the Labour Party Conference today (Tues 29), already been welcomed by industry chiefs and car manufacturers alike.
The initial programme offered customers trading in cars either ten years old or more, £2,000 towards a new car, in partnership with various manufacturers.
A government contribution of £300 million opened the scheme up to 300,000 customers but, due largely to the scheme's success, funding was running out way ahead of its May 2010 deadline.
Today's announcement is a huge boost to manufacturers who feared the scheme was set to end and a corresponding slump surge would hit them hard once more.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: "Lord Mandelson's announcement of an extension to the car scrappage scheme is an extremely important decision that will inspire consumer and business confidence.
"It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable.
"The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates."