UK car production was down by 59% in February, according to new figures from the Society of Motor Manufacturers & Traders (SMMT) – the UK car industry’s trade body.
The 2010 British Motor Show has also been cancelled, so it’s all doom and gloom for the UK’s car industry, which is now desperately hoping for a scrappage scheme to help it shift some unsold stock.
In Britain, the government is still considering the pros and cons of paying people to scrap their old cars and buy new ones. Such a scheme has also been proposed in the USA, too – although the downside of this scheme is its protectionist approach, requiring buyers to buy new cars that have been made in the USA.
While this might at first seem a good idea (if you’re American), if all countries did this, the result would be a restriction in global trade and growth, as history has shown before.