Hyundai Gets Largest Share in UK Car Scrappage Plan (Cash for Clunkers)

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LONDON, June 18, 2009; Phakamisa Ndzamela writing for Reuters reported that South Korea's Hyundai Motor Company has so far received the lion's share of new car orders under the British government's vehicle scrappage scheme, with sales boosted by an interest in smaller cars, according to figures obtained by Reuters.

The 300 million-pound ($491.9 million) scheme invites motorists to trade in cars more than 10 years old in return for a 2,000 pound subsidy to buy a new vehicle, in an effort to help an industry which has been severely dented by the recession.

The government earlier in the week said the scrappage scheme had resulted in 60,000 new orders in the period from April 22 to June 7.

Out of the 15 car companies in the UK that Reuters contacted, Hyundai was in pole position, stating that its latest figures, which covered the period from April 23 to June 7, amounted to 8,246 new orders.

A spokeswoman for the company said the Hyundai i10, an entry level model, was a big seller.

"With the scrappage discount on top you can get a brand new i10 for less than 5,000 pounds," the spokeswoman said.

More than 90 percent of the companies polled indicated that consumers were interested in fuel efficient cheaper cars.

"What we've seen in the scrappage schemes that were implemented across Europe is that there's a tendency to buy smaller cars," a spokesman for the UK's Society of Motor Manufacturers and Traders (SMMT) said.

"It might be because of the gas mileage or the lower CO2 emissions that are attached to those cars and also the lower price," he added.

Ford came second in the number of car orders at 8,050 followed by Toyota at about 7,800 vehicles.

Following are company estimates of scrappage scheme new car orders covering the period April 22 to June 17:

Hyundai 8,246

Ford Motor Company 8,050

Toyota Motor Corp 7,800

Kia Motors UK 7,300

Volkswagen 4,591

Vauxhall 3,909

Nissan 3,202

Renault 2,600

Peugeot 2,500

Citroen 2,500

Honda 2,335

BMW and MINI 1,722

Mazda 1,355

Volvo 1,161

Chevrolet 950

Editing for Reuters by Greg Mahlich