New scrappage scheme would put aftermarket at “great risk”, IAAF warns

Vehicle manufacturers call for scrappage to boost sector but there's fears it could jeopardise independent garages

New scrappage scheme would put aftermarket at “great risk”, IAAF warns
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Calls for a new scrappage scheme by vehicle manufacturers to help get the sector moving again have been criticised by the Independent Automotive Aftermarket Federation (IAAF).

The British car industry has struggled as a direct result of the coronavirus in recent months.

The IAAF has said that while the it recognises that it is imperative to get the economy back in gear, it believes there are other ways to do so and a scrappage scheme is not the only way.

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The federation argues that if introduced, it will have a significantly negative effect on public mobility and the automotive aftermarket long term, especially as most of the vehicles eligible for the scheme will still be very much roadworthy.

This prediction is based on previous experience as in 2009, a scrappage scheme removed 400,000 serviceable vehicles from the aftermarket, with more than 90 per cent of vehicles sold under the scheme originating from non-UK factories.

In 2020, the situation remains largely the same with 88 per cent of cars sold in the UK during 2019 being imported.

Wendy Williamson, IAAF chief executive, said: “Motorists are currently under great pressure, and they should not be penalised for keeping hold of vehicles that are in good working condition and can continue to be serviced, repaired and maintained long into the future.

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“Not only is this unfair to consumers, but it is putting the aftermarket at great risk, as it will result in a direct decrease in the number of vehicles entering independent garages.”

The UK aftermarket employs around 347,000 people as opposed to 186,000 in vehicle manufacturing.

The IAAF fears employment in the independent automotive aftermarket would be damaged by a scrappage scheme and jeopardise thousands of repair businesses.

It would also detrimental to motorists and customer choice, accroding to the federation.

With a newer vehicle parc, there is also a risk that VMs could potentially gain a monopoly on access to vehicle technical condition data, raising the question of data access.

Block exemption

With the forthcoming block exemption legislation renewal due in 2023, IAAF is continuing to argue that the aftermarket should have the same access rights as the franchised sector, providing the workshop is equipped with appropriate tools and equipment, thus creating a level playing field for all.

Wendy added: “Changing the habits of consumers is difficult, and if the scrappage scheme is introduced, there is no guarantee that a motorist will opt for an electric vehicle over a petrol or diesel vehicle.

“Perhaps a more feasible option would be to introduce a limited scheme targeted at those living closest to clean air zones as demand for electric vehicles will be higher in these areas.

“It’s crucial that any proposals are reviewed as the economic impact of a scrappage scheme could be detrimental to the aftermarket and place an unnecessary financial burden on the consumer.”

For further information about the IAAF, select ‘more details’ below.

Do think a new scrappage scheme would affect your workshop? Share your comments below.

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Home Page Forums New scrappage scheme would put aftermarket at “great risk”, IAAF warns

  • This topic has 5 replies, 1 voice, and was last updated 1 year ago by Peter Miles.
Viewing 6 posts - 1 through 6 (of 6 total)
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  • #196351 Reply

    Calls for a new scrappage scheme by vehicle manufacturers to help get the sector moving again have been criticised by the Independent Automotive After
    [See the full post at: New scrappage scheme would put aftermarket at “great risk”, IAAF warns]

    #196366 Reply

    Absolutely right. This needs to be repeated loudly and often.

    #196372 Reply
    Robert Mcavan

    i think using the Covid lockdown is a good excuse to deflect the the real reason for Scrappage. In 2035 they want to stop the sale of combustion engine only cars. However, If you Add current new car production quotas to the already massive stock of new cars in storage. You have a massive problem coming for the Vms and governments. The backlash over what to do with all these unsold vehicles has already raised its head in some quarters and could be a massive embarrassment for the government at the time. Unless you start reducing the amount of stock now. By tempting people who wouldn’t be considering buying a new car It not only reduces the stock and allows quotas to be hit it also dilutes future embarrassment at the top.
    The next thing argument to get scrappage will be the reduction in emissions it will bring with New v Old cars .

    #196373 Reply
    Lee heywood

    The scrappage scheme does not remove the lower tier of cars from use. People who run the so called banger still can’t afford to move up to a new car. What the scheme does is remove the next their up. Cars worth around the £1000 – £1500 Mark. These car owners are the scheme as a discount of the new car that they take advantage of. When the banger owner desperately needs to move up the their there are no affordable cars there so they are forced to keep these very substandard vehicles on the road.

    #196374 Reply

    There is no doubt a scrappage scheme would seriously damage independent workshops again. Neither the manufacturers or the government want the independent sector and this is just another plot to destroy us.

    #196375 Reply
    Peter Miles

    If they’re serious about cleaner air and the environment what about a scrappage scheme for older diesels (say pre-2010?) and large 4×4’s not used for work purposes.

Viewing 6 posts - 1 through 6 (of 6 total)


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