SMMT today welcomed publication of a Trade and Industry Select Committee report on the economic impact of the End of Life Vehicles (ELV) Directive. The report confirms industry concerns about funding new ELV rules in the UK and urges the government to follow the 2007 date for cost-free take back of older vehicles on the road.
‘We welcome today’s clear message from the Trade and Industry Select Committee’, said SMMT chief executive Christopher Macgowan. ‘Manufacturers have stressed the importance of keeping the 2007 date in the Directive. This will give us the opportunity to develop dialogue with the recycling industry to create a workable framework where costs to all parties are minimised.’
The report expresses some concern with Option 4*, the industry scheme to process cars within the network of existing treatment facilities. It calls for further discussion between manufacturers and the recycling industry.
SMMT has recognised the need for on-going dialogue. Meetings with dismantlers and shredders have already taken place and the industry has shared the work of independent consultants on Option 4. Further meetings to deal with specific issues of concern are being sought.
Christopher Macgowan added, ‘SMMT believes that the best way to minimise the costs associated with new ELV rules, protecting last owners and new car buyers, is to ensure that there is active competition. The motor industry is convinced that the proposals put forward in Option 4 are the most effective way of delivering this.’
Notes to editors:
* There are four elements to SMMT’s Option 4:
- Vehicle owners deliver the end of life vehicle to a dismantler or shredder. This responsibility to be enforced through an effective system of end-user certificates with the DVLA.
- Dismantlers would be given the choice to accept or reject the vehicle, but once accepted it would become their responsibility.
- Shredders would be required to accept any vehicle, and take the added financial benefit from the materials extracted. After 2007, if the shredding industry were to be in deficit, vehicle manufacturers would organise free take back of the vehicles.
- An independent third party would assess the extent of any deficit.
