The Independent Automotive Aftermarket Federation (IAAF) in the UK has received confirmation from the Department for Business, Energy & Industrial Strategy that the UK government now has no plans to introduce a vehicle scrappage scheme.

Since the idea of a vehicle scrappage scheme was muted, the IAAF has strongly argued that it would have a significantly negative effect on public mobility and the automotive aftermarket long term, especially as many of the vehicles eligible for the scheme will still be very much roadworthy. This argument was based on previous experience from 2009, when the scrappage scheme in the UK removed 400,000 serviceable vehicles from the aftermarket, with more than 90 percent of vehicles sold under the scheme originating from non-UK factories. In 2020, the situation remained largely the same with more than 80 percent of cars sold in the UK being imported.

As the UK aftermarket also employs approximately 347,000 people as opposed to just 186,000 in vehicle manufacturing, employment in the independent automotive aftermarket would also have been damaged by a scrappage scheme and jeopardised thousands of repair businesses.

Wendy Williamson, IAAF chief executive commented, “This is fantastic news for the independent aftermarket and also demonstrates the power of IAAF lobbying activity. We believe a scrappage scheme would have put an unnecessary burden on the motorist and removed many environmentally friendly vehicles from UK roads.”

The introduction of a scrappage scheme has also been called for by some observers in Ireland, as new vehicle sales continue to struggle. However, the same arguments that won the day in the UK can also be applied here to an even great extent. With Ireland having no vehicle manufacturing base, and dealerships only making minimal margin from car sales, a scrappage would merely be sending valuable financial resources out of the state at a time when every euro is critical. The effect on aftermarket employment, especially in rural areas could also be devastating, with independent garages forced to close or lay off staff.