Scrappage scheme extended for month

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The motor sector has been given a welcome boost after it was announced the car scrappage scheme is to be extended until the end of March.

Business Secretary Lord Mandelson said the scheme, which allows drivers to trade in their decade-old vehicles for a £2,000 discount on new models, will continue for up to one-month or until the £400 million fund pot runs out.

The initiative was introduced last May to help improve car sale figures, and so far 330,000 new cars have been ordered out of a possible 400,000 that the Government capped for the scrappage scheme.#

Lord Mandelson has urged the remaining 70,000 motorists to take advantage of the extended scheme.

He said: "Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most."

New car sales increased by almost a third in January to 145,500 compared with the same month last year, new figures show.

"The 30% increase in January new car registrations provides a better than expected start to 2010 for the UK motor industry," said Paul Everitt, SMMT chief executive.

Copyright © Press Association 2010

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