Ford has launched a scrappage scheme for pre-Euro5 vehicles that it claimed could offer savings of up to £7,000 on a new Transit van as well as improving air quality.

The scheme, which runs until the end of the year, is open to owners of vehicles of any make who trade in their van or car to be scrapped when purchasing a new Ford model.

The manufacturer claimed customers could also benefit from savings of £5,500 on a Transit Custom, £5,000 on a Transit Connect and £3,650 on a Transit Courier. The savings are reached by combining a standard £2,000 scrappage payment for all old models plus the manufacturer’s incentives, which are tailored to each new model range.

Ford pointed out that its scrappage scheme is the first to include LCVs, which sets it apart from initiatives introduced by other brands, such as Mercedes.

Andy Barratt, chairman and MD of Ford of Britain, said: “Removing generations of the most polluting vehicles will have the most immediate positive effect on air quality, and this Ford scrappage scheme aims to do just that.”

“We will ensure that all trade-in vehicles are scrapped.”

Ford estimated there are currently 2.5 million pre-Euro5 LCVs on the UK’s roads.

In a further bid to reduce its carbon footprint the manufacturer is to start trials later this year of a plug-in hybrid version of the Ford Transit Custom. Dubbed the Transit PHEV, it is planned for commercial introduction in 2019.