Scrappage scheme round-up

03 September 2009

German scrappage scheme ends
Half of UK scrappage budget remains
French scheme extended into 2011

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The German scrappage scheme has ended after its €5bn (£4.4bn) worth of government funding was spent.

The scheme proved highly successful with nearly two million motorists scrapping their cars to purchase new models. Germany experienced a 28% increase in new vehicle sales in August compared with the same month last year.

Under the German scheme, motorists received €2500 (£2185) towards a new car when they scrapped a vehicle that was at least nine years old.

Half of UK's cash spent
In the UK, the Government's £300m scrappage budget has been depleted by more than half since its launch in May. The scheme is set to end on 28 February 2010, or when the funds run out.

The UK scrappage scheme has helped new car sales increase by 2.4% during July – the first rise in registrations for more than a year.

Government sources have refused to answer calls for the UK scrappage scheme to be extended past its closing date.

French initiative extended
The French Government, however, has announced that its own version of the initiative will be extended into 2011, having originally been scheduled to finish in December.

More cash for clunkers, too
The American version of the scrappage scheme, dubbed 'cash for clunkers' has already been given an extra $2 billion (around £1.2 billion).

The US initiative had its budget boosted after the original $1 billion was spent within days of the scheme's launch.

Analysts hope that a gradual phasing out of the incentive across Europe will help prevent a new crash in the car market.