As part of the Budget 2011 the Government announced the continuation of the scrappage scheme until 30 June 2011. The Society of the Irish Motor Industry (SIMI) welcomed the move that gives motorists a €1,250 discount off the price of a new car.
The society credits the scheme for creating an additional 3,200 jobs in the motor industry this year. Take-up has been better than expected; the SIMI predicted around 70,000 car sales in 2010 but the figure for the year to date is 88,095. Of that number 16,468 scrappage scheme cars were sold contributing €57.6 million in tax. If 10,000 cars are purchased under the scheme next year it should net the Government between €35 and €40 million.
Along with the increase in new car sales senior SIMI figures credit the scheme with increasing consumer confidence, providing a knock-on benefit to second-hand car sales and benefiting the servicing and repair sector.
"The extension of the 'Scrappage' for the first six months of 2011 should protect those job gains and help create more vacancies," according to Padraic Deane at RecruitAuto.ie, a site that has extended its free recruitment service to auto industry employers and jobseekers alike. Currently there are 140 motor industry jobs advertised on the site.
The motor industry is also currently engaged in a national program that aims to recruit 150 new apprentices in the coming weeks.