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Ford highlight scrappage opportunities with CVs

publication date: Jun 20, 2009
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author/source: Robin Roberts
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Ford has launched a action plan to dealers to increase the number of commercial vehicles being brought in under the UK scrappage scheme.

Ford of Britain managing director Nigel Sharp (below) has sent dealers a letter outlining what he thinks is a missed opportunity, but he also wants the Government to do more.

"We estimate there are over a million CVs out there, whether on the road or held under SORN, which qualify under the scrappage scheme," he said as the Ford Transit ECOnetic was launched into the range.

Speaking a month after the scheme stuttered into life with manufacturers, including Ford expressing concerns over the VAT implications and the complexity of it, Mr Sharp said sales teams and administration staff were now getting use to the procedure of part-exchange under the scrappage requirements.

Essentially a vehicle must be 10 years old and owned by the seller for 12 months and known to the DVLA for the same time, whether on road or held on SORN.

"Up to now the emphasis has been on part exchanging cars but I think more could be done with CVs than dealers realise. The take-up by sellers of vans has been very low and we have to do more to encourage them.

"We are sending our dealers a five-point plan to target more CV sales under the scrappage scheme because it is a very good opportunity for the typical small business to get hold of a modern vehicle to do their job and save money with operating costs."

He said that the scheme meant a business could have a new small van for about the same price as a super-mini, provided the customer's credit worthiness was good.

"Few understand quite how reachable the market is. The opportunities are there and now is the time to go for them."

He added that it was likely the operation of the scheme with its deadline due to expire in March might lead to a rush of orders in the last few months which would mean some owners missed out and failed to qualify.

"I think we are going to have to ask the Government to extend the scrappage scheme a little longer to ensure as many as possible take advantage of it.

"It will also raise the question of what you do after it ends to keep the sales momentum. We estimate the scrappage scheme will add as many as 300,000 extra sales over 12 months and no-one knows what will follow on.

"The scrappage scheme has worked for us and considerably reduced the stock we have held in distribution centres but we have to balance stock with demand to ensure our customers do not suffer prolonged delays in getting the vehicle they want."		Nigel Sharp wants more Ford CV sales

His point about CV opportunities under scrappage was endorsed by SMMT chief executive Paul Everitt, who said as production figures for May showed they were down over 55pc, and 65pc for CVs, "Commercial vehicle production is severely affected by low business confidence and economic uncertainty.

"Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand."

          


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