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Stop Talking, Start Scrapping Says Suzuki

June 5th, 2009
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Leading Australian car importer Suzuki has reiterated its call for the Australian government to introduce an automotive scrappage scheme.

“We’ve been closely monitoring the results from countries that have introduced a scrappage scheme and cannot fathom why the idea meets with such resistance here,” said Suzuki Australia General Manager Tony Devers.

“In the UK more than 35,000 vehicle orders were taken in the two weeks after introducing its scrappage subsidy.

“In Germany, its scrappage scheme has increased sales more than 20 per cent.

“And in New Zealand safety experts are hailing the success of a trial scheme that has resulted in a number of older vehicles lacking the safety benefits and clean emissions standards of new cars removed from the roads.”

The UK scrappage scheme encourages motorists to trade in their car aged 10 years or older on a new car and receive a 2000 pound incentive.

“This is a scheme which benefits everybody,” said Devers.

“It would cut the level of harmful carbon emissions by replacing gas guzzling older cars with newer, cleaner vehicles.

“It would also dramatically improve the safety performance of the national fleet by providing incentives to sell cars equipped with modern features such as curtain airbags and stability control.

“And it provides a much needed stimulus to the economy that every government is trying to create.”

Devers called on the government to further improve a potential Australian scrappage scheme by tying the level of incentive to the green credentials of the new car being purchased.

“We want the government to implement the European standard of 130 grams per kilometre (g/km) and use that figure to truly define a ‘green’ car.”

According to the Australian Bureau of Statistics, the carbon emission average for the Australian vehicle fleet stands at 250g/km and average fuel consumption is 11.5 litres/100km.

Devers' call comes just a few months ahead of the launch of Alto, a small five-door hatchback powered by a 1.0 litre, three-cylinder engine with a certified 113g/km carbon dioxide output and fuel economy of just 4.8l/100km.

Not only will the newest Suzuki be one of the cleanest cars on the road it will also be one of the cheapest with pricing expected to start around $13,000.

Devers added that almost every car maker has a vehicle similar to Alto in its global portfolio, adding that the time has come for governments to reward buyers who base their purchase decision on the consumption and greenhouse gas output.

He said the expense of the scheme would be off-set by greater collection of revenues through import and stamp duties and GST.

"It seems remarkable that customers shopping at this end of the market should not be rewarded for thinking with their conscience as well as their wallet," he said.

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