Financial Times FT.com

UK’s cash-for-bangers effect may prove temporary solace

By Gill Plimmer

Published: August 19 2009 20:10 | Last updated: August 19 2009 20:10

At Toyota’s plant in Derbyshire, staff have been working shorter hours since April. But on Wednesday the Japanese car giant said the company’s workers could start full-time production again – a need they attributed to the success of the government’s “cash for bangers” programme.

Car scrappage graphic for UK companiesToyota, Hyundai and Fiat are some of the biggest beneficiaries of the scheme, which aims to reinvigorate the moribund car market. But car dealerships have also gained and two of the biggest – Lookers and Pendragon – have used half-year results in the past couple of days to call on the government to extend the scheme.

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