The government has announced plans to extend the vehicle scrappage scheme in the UK - a move that will help support manufacturers and the supply chain, ministers say.
Business secretary Lord Mandelson claimed the initiative, which has so far helped attract nearly 228,000 new orders, has had a major positive impact on the automotive sector and beyond.
The scheme will now be extended until February 2010 after the government agreed to invest a further £100 million - taking total spending on the project to £400 million.
Commenting on the decision, Mr Mandelson said the continuation of the initiative will help increase demand and confidence in the industry during the short term.
He added: "The sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain."
The announcement was welcomed by Kevin Gaskell, chairman of motoring.co.uk, who said as many as 850,000 vulnerable UK jobs have already been saved since it first launched.
He claimed the entire UK economy has benefitted from the scheme, from consumers through to car manufacturers, meaning the extension is a positive move.
If you are interested in learning more about supply chain management, visit our Service pages
