Feud over scrap scheme ends after UK carmakers commit

CARMAKERS ended their dispute with the government over the new cash-for-bangers scheme yesterday, and confirmed they will take part in the programme.<br /><br />Ford and Honda delayed their involvement in the scheme at the eleventh hour over concerns about how their financial contribution to the scheme would be structured.<br /><br />Both wanted clarification of VAT arrangements and tax liabilities. They also wanted car dealers to contribute to a share of the VAT on the cars.<br /><br />But the carmakers have now confirmed that they support and will be involved in the scheme, following last minute negotiations with the government.<br /><br />The delay was a huge embarrassment for Lord Mandelson, who is spearheading the project.<br /><br />Under the terms of the agreement, motorists can trade in their old banger in exchange for &pound;2,000 towards a brand new car. Half of the cash refund will be paid by the government, with the remaining half being footed by the carmaker.<br /><br />Ford said that since the scheme was announced, it has taken more than 3,000 extra orders for brand new cars.&nbsp;