Scrappage scheme 'saviour' of Irish motor industry

Just under 30,000 new cars were sold under the Government scrappage scheme, according to a review of the scheme published today by the Society of the Irish Motor Industry (SIMI).

Some 17,683 vehicles were sold under the deal in 2010, while 11,688 sales were recorded this year.

However it is expected that figure will rise to around 15,000 once the transactions for the final two days of June are added.

Renault was the top selling brand under the scheme while the Ford Fiesta was the top selling car.

The scrappage scheme - which ended last week - generated €100m for the Government in VAT and Vehicle Registration Tax.

"Scrappage has been the saviour for our industry," said SIMI president Gerry Caffrey.

"Two years ago, new car sales were 57,000 for the whole year, today that figure, for just half the year, is 77,000."

Mr Caffrey said howeve that the "real benefit" of the scheme was the 3,000 new jobs it created."

"Every job saves the government, on average €23,000 in PAYE, PRSI and Social Welfare so these 3,000 jobs represent a saving of €70m," he said.