Frankfurt Motor Show: Merc chief calls for scrap extension

James Baggott

Mercedes-Benz UK chief Dermot Kelly has added his name to the list calling for a scrap extension... but there's a twist!

Not only would the UK managing director like to see the scrappage scheme continued but he'd also like to see it revised to be fairer on all manufacturers.

'Our preference would be for it to be on a sliding scale compared to price,' he told AutoBlog at the Frankfurt Motor Show. 'VAT increases as the price of cars increase and that's the way I'd like to see the scheme run – so that there's more contribution the larger the car's price.'

Effectively what he's saying is as the price of the car bought under the scheme goes up, the contribution from the government and carmaker goes up too.

'At Mercedes we did not anticipate we'd do a high level of volume under the scrappage scheme, but we've even sold an SL63 on the scrappage scheme,' he added. 'But there is a tendency for it to benefit smaller cars, from Kia and Hyundai for example, and less so for brands like us. A sliding scale would help.'