Ford and Honda 'delay' scrappage

If you were thinking about driving your old banger to a Ford or Honda dealership after work today (18th May) and exchanging it for £2,000 off a shiny new car, think again. Both makers have confirmed that they will not be registering any new cars under the scrappage scheme today due to a row with the Department for Business, Enterprise and Regulatory Reform (BERR), the scheme's administrators.

Both have delayed participating in the scheme because of a dispute over how they're able to fund their part of the £2,000 discount. Under the terms of the scheme, the carmaker and the Government pay £1,000 each. However, both makers want to split their half of the money between themselves and individual dealers, but according to a Honda spokesman, “we're being told that we can't do that.”

As such, discussions are ongoing between Honda, Ford and the BERR, prompting the two brands to delay scrappage scheme registrations for today, though it is expected that both will resume participation before the end of this week.

In a statement, Ford intimated that the complications arose recently, despite the scheme being announced almost a month ago. It said: “based on details which only became apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues but is confident it will begin vehicle deliveries within a few days of the official start date.” Honda also says it is “optimistic we will be able to take registrations very shortly. It is just some points of detail that we are seeking to clarify.”

Mark Nichol