Once the recession hit, a number of key manufacturing industries began to suffer, namely the car industry. Demand dwindled and the media was saturated with stories of closing factories and job losses. However, according to a new report conducted by Forum of Enterprise and Retail, sales are up by almost thirty per cent and 2011 is looking much more positive for the UK car industry,
To an extent, this increase in sales can be attributed to the Government’s Cash for Scrap Scheme. According to many leading industry experts this scheme has saved many small businesses in the short-term and secured their survival as the UK’s economy continues to recover.
Car dealership owner Nathan Vaughn, comments: “The cash for scrap campaign absolutely helped my business. Prior to its implementation, business was dwindling in way we had never before seen and at certain points closure looked imminent, However, this scheme allowed us to reach a different consumer and while the scheme does close soon, business looks like it is on the up.”
According to government figures the cash for scrap scheme accounted for almost a fifth of all car sales in 2009.