Cash-for-banger scheme dealt opening day blow

<!--StartFragment--> BUSINESS secretary Lord Mandelson&rsquo;s scrappage scheme was dealt a blow at its launch yesterday, as two of the scheme&rsquo;s backers delayed registration of their new vehicles at the eleventh hour.<br /><br />The cash-for-bangers programme, designed to kickstart the ailing auto industry, gives motorists a &pound;2,000 incentive when they trade in their old car for a new, cleaner model. Half, &pound;1,000, will come from the government, and the remaining &pound;1,000 from the industry.<br /><br />But carmakers Ford and Honda said yesterday a dispute over how their contribution to the scheme was structured meant they would not register cars in time for the launch of the scrappage scheme.<br /><br />&ldquo;Detailed information on the scrappage scheme was not included in the Budget, when the programme was announced. We only got details on Friday afternoon.&rdquo; Ford said.<br /><br />&ldquo;We&rsquo;re still full square behind the scheme,&rdquo; a Ford spokesman added.<br /><br />Meanwhile, Honda has told its dealers not to register cars under the scheme until details of the funding are verified.<br /><br />&ldquo;We weren&rsquo;t happy with what the government was suggesting,&rdquo; Honda said.<br /><br />Both carmakers are hoping to get car dealers to contribute a share of the VAT on the cars.<br /><br />Mandelson, who has spearheaded the programme, has said the scheme is a &ldquo;wonderful bargain,&rdquo; and good news for the car industry.<br /><br />But shadow business minister, Mark Prisk said yesterday he was writing to the secretary, &ldquo;asking him to publish full details of the scheme, including its tax treatment by VAT, so that individuals and companies know exactly what is on offer.&rdquo;<br /><br />Meanwhile, Japanese carmaker Toyota launched the revamped Prius yesterday, the world&rsquo;s best-selling hybrid car.<br /><br />Toyota set sales targets of 10,000 units a month for the car, which is priced at Y2.05m (&pound;14,157). The target is twice as high as rival Honda&rsquo;s outlook for its hybrid, the Insight.&nbsp;&nbsp;