Scrappage scuppers Ford

Sep 30 2009 Maurice Glover

Scrappage scuppers Ford

FORD sales may be dented by the extension of the Government plan to boost showroom business by scrapping old cars.

The market leader will suffer because its models cost too much for buyers to enjoy maximum benefit from the £2,000 scrappage 'sweetener' on 10-year-old vehicles, it was claimed.

A company spokesman says: 'There is a real risk that our sales will suffer in the coming months because the meat of this scheme lies in the purchase price range of £5,000 and £7,000 and our cheapest car costs just under £9,000.

'To make matters worse for us, people are now able to order their new cars to arrive before the cut-off period of the scheme, something that couldn't be guaranteed during the first phase.'.

Ford's entry Ka model is built by Fiat alongside the sell-out 500 and Panda ranges and will remain firmly outside the scrappage 'sweet spot' pricing band that has proved a major success for supermini rivals like the Hyundai i10 and Kia Picanto.

'We think there may be a surge in business later this year as people try to move ahead of the VAT increase in January, but in the meantime, there's no doubt the Ka will suffer. There's no likelihood of extra discount being available at this end of the market - our £1,000 contribution to the scheme accounts for that - and the dramatic reduction in the value of Sterling has put us on high alert for price increases,' added the Ford spokesman.

Meanwhile, the extension to include 100,000 additional scrappage cars was welcomed elsewhere in the industry.

Nissan UK managing director Paul Wilcox said: 'We're delighted - there's no doubt this will continue to give the UK car industry a boost. Along with our offer on cars aged from eight years old, it encourages people to buy British, providing vital support for UK manufacturing.'

Kia Motors claims that more than 16,500 customers are experiencing its cars for the first time as a result of the scheme.

'This extension will help maintain momentum across the motor industry. It will also keep footfall high in dealerships, hopefully protecting jobs,' said managing director Michael Cole.