THE Government scrappage scheme has given Honda’s South Marston factory a major boost.

Honda dealers up and down the country reported increased levels of business as drivers, keen to reap the benefits of the scheme, traded in their old vehicles for modern and fuel efficient new Hondas.

It is welcome news for the 3,000 people who work at Honda’s factory, a year after the production line reopened after a four-month shutdown.

Honda cars proved particularly popular with drivers of old Fords and Vauxhalls with the Jazz – now built at Honda’s Swindon factory – proving to be Honda’s scrappage star.

It was the most popular Honda model purchased through the scheme, taking 68 per cent of total orders.

A total of 50,000 Jazz cars will be built in Swindon in the current financial year – more than a third of the South Marston production.

And at Fish Brothers Honda in Swindon the Jazz was the dealer’s most successful model.

While the scheme was not directly designed to deliver environmental benefits, the purchase of newer, smaller and cleaner cars had a positive impact on nationwide carbon dioxide emission levels.

The scrappage scheme, which involved £800 million of investment over 10 months, ended in March. It aimed to boost the car industry which had suffered a major downturn in the recession.

Honda’s environment manager, John Kingston, said: “The scrapping of old cars and their replacement with more economical and cleaner models has helped lower CO2 emissions.

“The average car bought under the scheme emitted just 133.3g/km – that’s 26.8 per cent less than the average scrapped car.”

The scheme proved particularly successful in getting new customers through the doors of Honda showrooms.

Janice Kennedy, head of sales for Honda (UK), said: “Honda dealers have enjoyed great success with the Scrappage Scheme: 84 per cent of our scrappage sales were new customers to Honda, and it has been a fantastic way to welcome them to the Honda brand.

“It has allowed consumers to spend more than their original budget, get more for their money and invest in cars renowned for their reliability.”

There is now said to be an air of stability at the factory.

Workers at South Marston, known as associates, took a pay cut and there was an agreement reached between Honda and Unite to safeguard nearly 500 jobs for the 10-month reduction in associates’ pay of three and five per cent for managers (not the five and 10 per cent we mistakenly reported last month).

In addition to these cuts an additional six days paid holiday was negotiated for all associates to be taken in that 10-month period.

These three per cent and five pay cuts were reinstated in April.

During pay and conditions negotiations between Honda at Swindon and Unite that took place earlier this year a number of improvements were secured and endorsed by a ballot of union members.