Encouraged by the success that Germany has enjoyed in spurring new car
sales through its vehicle scrapping program, officials for the Society of Motor Manufacturers and Traders in the United Kingdom are pushing their government to institute a similar plan as quickly as possible. Sales in the UK were down nearly 22% in February and are off by almost a third so far in 2009. Germany, on the other hand, managed to score a sales increase of 21%
last month due in large part to incentives that pay new car purchasers €2,500 for trading in
and therefore removing their old car from the road, though vehicles must be at least nine years old to qualify.
We expect similar overtures from more countries looking to boost their respective domestic automotive industries. U.S. officials have considered vehicle scrapping plans
as recently as last year, though nothing has managed to make it through the legislative process just yet. Stay tuned.
[Source: Automotive News
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