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Ford and Honda suspend scrappage scheme

Written By Faye Sunderland Published On: May 18 2009
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Carmakers, Ford and Honda have delayed the start of the scrappage scheme among their dealerships as conflicts over payments caused disputes.The BBC reports that both car makers have ‘a number of matters to resolve’.Ford is reported to have suspended deliveries to dealership while Honda has told its dealers not to register any cars under the scheme.From today, new car buyers with a car aged ten years or older qualify for a discount of £2,000 off their new purchase when they surrender to scrap their old banger. The government has agreed to supply £1,000 of the incentive, while participating manufacturers must stump up the rest. So far, 38 manufacturers have registered to take part.However both Ford and Honda, who confirmed that they would take part scheme, have taken the decision to delay their participation, following disputes over ‘administrative issues’.A Honda spokesman told the BBC: "Relating to the £1,000 contribution - the original request was for a contribution of £1000 from the industry. "We were looking at splitting that between the manufacturer and our dealers but we're being told that we can't do that."The spokesman told the BBC that manufacturers alone were expected to make up the payment, and that Honda was challenging that.

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