Calls to extend scrappage scheme after car sales rise in July

The organisation says the rise is thanks to the government's scrappage scheme. This was the first growth in 15 months, and even outstripped the SMMT's own forecast by 10%. "The impact of the scrappage scheme is clear and we are encouraged by the positive impact it has had, increasing new car registrations for the first time since April 2008," said Paul Everitt (pictured), SMMT chief executive. "Industry still faces a long road to recovery and we urge government to take action to sustain economic recovery through easing access to finance and credit, and delivering the loan guarantees set out by the Automotive Assistance Programme." David Raistrick, UK manufacturing leader at Deloitte, welcomed the news but warned the car industry could suffer another downturn if the scrappage scheme is not extended. "I urge the government to reconsider its decision and extend the scrappage scheme. The UK car market needs ongoing incentive schemes such as scrappage to stimulate a further recovery. Concern has already been expressed in Europe, where the German, Italian and French fear they will suffer from the cessation of their scrappage schemes."