Hyundai makes hay in UK incentives

AS US president Barack Obama signed America’s ‘cash-for-clunkers’ car sales incentive scheme into law last night, a similar scrappage program in Britain was kicking goals, with Hyundai one of the biggest scorers.

The South Korean importer said it was selling shiploads of its entry-level i10, i20 and i30 cars in the UK this month, taking 11,500 orders under the scrappage scheme that was introduced to an initial slow response in mid May.

Hyundai UK claimed its record June sales figures would “send shockwaves through the industry”, adding that it expected to out-sell “big-name players in the car market”.

Hyundai is reportedly outselling GM’s Vauxhall so far this month, and Autocar reports that Ford might be the only company to keep its nose ahead of the Korean brand in June.

Four shiploads bringing 5100 Hyundai cars have unloaded at London’s Tilbury docks to fill a backlog of orders from customers wanting to trade in old cars on new vehicles, aided by a £2000 ($A4114) subsidy split evenly between the government and the manufacturer.

The trade-ins will be crushed to rid the roads of old, polluting vehicles while helping to boost the struggling auto industry.

Hyundai UK managing director Tony Whitehorn said: “We had plans in place to make sure we were ready for scrappage, but the level of demand has shocked people who have been in the industry for decades.



“Customers are literally queuing up in front of salesmen’s desks. Hyundai dealers have never seen anything like it and are taking on extra staff just to cope with the demand.” The Hyundai success is just another feather in the cap for the company, which seems to be able to do little wrong in markets around the world right now.

In Australia, Hyundai sales are up 16.4 per cent year to date, with May sales jumping 32.4 per cent on the back of strong sales of i30, which is up 68.7 per cent this year.

The even better news for Hyundai Australia is that two of the models that have been selling so well in the UK under the scrappage scheme, the baby i10 and i20 light car, are also destined for the local market. The i20 might arrive before the end of the year, while the i10 is scheduled for next year.

In the US, president Obama signed the so-called cash-for-guzzlers bill last night, kicking off a 30-day period in which the US government will prepare regulations for the program.

The $US1 billion ($A1.25b) stimulus package will offer vouchers for up to $4500 for old vehicles sent to the crusher when traded on new, more efficient models.

The original $US4 billion/one-year program was cut to a $US1 billion/three-month scheme by the Senate, where opponents raised a range of concerns.

Some argued it did not do enough to encourage more efficient vehicles, while others said it would merely pull forward the market at great cost to the taxpayer.

Nevertheless, a compromise scheme was passed by the Senate and sent off to the White House, where president Obama signed it into law as expected.

Read more:

Cut-down ‘cash-for-clunkers’ bill is go

Congress cranks clunkers cash scheme

‘Cash for clunkers’ scheme closer in US

Britain reports scrappage boost