Flint Insurance

Flint Insurance

February 16, 2010 01:00 ET

Motor Industry May Suffer When Scrappage Scheme Ends

MIDDLESEX, UNITED KINGDOM--(Marketwire - Feb. 16, 2010) - The Government funded scrappage scheme has brought huge success to Britain's beleaguered motor industry since its launch in May 2009, but as Motor Trade Insurance Specialist Flint Insurance warns, with money fast running out the trade looks set to face a tough year ahead.

On February 4th, the Government announced that the scheme had been extended by a month to help both car manufacturers and dealers prepare for the final stages. According to the Society of Motor Manufacturers and Traders (SMMT), published figures show a 30% year on year increase in car sales in January 2009, but the monthly total was shockingly decreased by 17,000 vehicles compared to sales in January 2008.

The UK recession was officially announced as "over" at the start of 2010, but many car dealerships and manufacturers will take months and even years to recover. Last year the job cuts at Jaguar Land Rover in Merseyside and Nissan's Sunderland plant only highlighted the difficulty that the industry was facing.

A spokesman from Flint Insurance commented, "The Government's scrappage scheme has been a huge success for what seems to have been an industry desperately keeping afloat. The motor industry has had a short boost from the scheme, but with the funding due to come to an end most will feel a sharp decrease in sales as people tighten the belts on their spending."

Based in Harrow, Middlesex, Flint Insurance are one of the UK's leading motor trade insurance brokers offering comprehensive road risk insurance cover. They offer bespoke policies to cater to the varied needs of clients and using a panel of insurers means that they can offer the most competitive prices. To find out more, visit: http://www.flintinsurance.co.uk/

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