BACK IN GEAR!
A RECESSION-HIT car parts manufacturer which was forced to shed a third of its staff is on the road to recovery, thanks to the scrappage scheme.
Stockton plastics company Nifco UK made 80 redundancies within three months towards the end of last year. With new vehicle sales on the rise, though, the company’s order book is filling up fast and bosses have just taken on 20 staff with plans to recruit a further 20.
Earlier this week, the Government extended its £300m contribution to the “cash for bangers” scheme by another £100m to “build on its success”. Teesside auto dealers credited a 40% increase in sales to the scheme.
Nifco MD Mike Matthews said the scrappage incentive was responsible for the company’s strong comeback.
“We were decimated in October,” he said. “Car sales were absolutely dead before the scrappage scheme was introduced, but they have come back very strong. Our figures for September are higher than last September - if it wasn’t for the scrappage scheme, we estimate it would be 30% lower. Long live scrappage.”
The Yarm Road company which supplies interior, exterior and engine components for Nissan, Honda, Toyota and Ford is shipping to all the major European plants.
“The scheme is supporting us through the most difficult times especially the winter months and, come next year, it will continue to recover,” Mr Matthews added. “The market will be in a better position. It’s still not what it was in 2007, but we are seeing a definite upward trend.”
The Government’s extension to the scheme, which offers £2,000 off new low emission vehicles when traded against cars of a certain age, will cover another 100,000 vehicles when added to the matched funding provided by manufacturers. Operating on a first-come-first-served basis, the scheme proved so popular that funds are expected to run out fast.
Nissan’s Sunderland plant also announced the re-hiring of 350 temporary workers as a direct result of the boost to sales from the scheme.
Business Secretary Lord Mandelson said the sector had delivered a boost to manufacturers and the supply chain.
Though he added: “This is not a blank cheque to the auto manufacturers but recognition that there is still a short-term challenge to boost demand and confidence in the sector.”
