SMMT welcomes end of life vehicles inquiry

20 June 2001 #SMMT News

SMMT today welcomed the opportunity to contribute to the Trade

and Industry Select Committee’s inquiry into the economic impact of the End

of Life Vehicles (ELV) Directive. The committee has called for written evidence

by 21 September and will hear oral evidence in the autumn. SMMT looks forward

to making a positive contribution to the inquiry, focussing on ensuring that

implementation does not impose unnecessary administrative and cost burdens for

UK manufacturers.


‘The ELV Directive is a complex piece of legislation and we

are keen to ensure that it is fair for both the environment and industry. The

Trade and Industry Select Committee’s inquiry will provide an important opportunity

to review the key issues in advance of Government legislation’, said SMMT chief

executive Christopher Macgowan.


Manufacturers are keen to play their part in vehicle disposal

but remain concerned that many parties that also gain significant income from

a car during its life, including the government, will not pay a penny towards



The industry will point out that the Directive should not be

implemented in a way that imposes more costs on UK manufacturers than others

in Europe. Germany and France have already set out how targets set in the Directive

will be reflected in their laws and the UK government should follow their lead.

Imposing a stricter regime in this country would be both impractical and costly.


To encourage responsible vehicle disposal, and to cut down

on the problem of car dumping, SMMT is calling for the introduction of Certificates

of Disposal. Only when the last owner can prove that the vehicle has been disposed

of properly will a certificate be issued. Under the scheme, which already works

well in Germany, the owner will still pay vehicle excise duty until a certificate

has been granted.


Notes to editors:


    • In a report called Who’s milking the motor car? SMMT showed

      that the government gained most income from an average car throughout its

      nine-year life. 23 per cent of the £50,000 generated by the car was taken

      by the treasury. Its sale new accounted for just 16 per cent, equal to the

      take from finance houses and insurance companies during its time on the road.


    • The ELV Directive sets two target dates for manufacturers.

      In 2002 manufacturers will be made to pay a significant part of recycling

      costs of all new vehicles. In 2007 the liability will extend to all vehicles

      in the parc. The UK government has not confirmed whether or not it intends

      to follow this text or impose stricter targets for manufacturers in this country.


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