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Bonus program for German car breaks extended to meet demand.
Bonus program for German car breaks extended to meet demand.
Tuesday, April 7, 2009 00 01 BST First published on Tuesday, April 7, 2009 00 01 BST.
Germany premium scheme to scrap yard was so successful, it was extended to the end of the year after attracting 2m 1 applications.
The initiative offers buyers of new fuel efficient cars a 2500 2273 discount if scrap a vehicle over nine years.
Consumer demand has been so strong that the original program was short He drew 1 applications 2m since its introduction on January 27, according to the German Association of Automobile Importers, VDIK About 600 000 vehicles were purchased with the bonus with applications that remain reflected in car sales in the coming months.
The regime sent new sales of German cars soaring in March 40 there is a year to 401,000, the highest level since 1992 Revenues up 18 in the first quarter as consumers rushed mainly to buy smaller cars A Chevrolet Matiz goes for 4900, including the premium.
Car buyers camped outside the exhibition rooms on the night of March 30, when the government has accelerated the process by allowing online applications eligible older cars must be scrapped by the end of 'year.
The program's success has prompted Berlin to extend beyond the original 1 of 5 billion cost, it should reach a 4-5bn ceiling, a decision will be announced tomorrow if it is fully recovery, it will increase Car sales in Germany by 2 million this year.
Volkswagen has become the biggest winner, with sales of more than 190,000 under the plan, while Skoda sold 80,000 VW cars decided to continue producing the Polo, which had to be eliminated Fiat and Suzuki have also seen sales skyrocketing.
The German government has backtracked on suggestions that the premium could be halved in the second stage after encountering fierce opposition from VDIK and others, he decided to extend the full premium until the end of the year.
VDIK spokesman Thomas Boehm said the 2500 bonus amounts to one tenth of the average price of a new car for small cars, this figure rises to 16-17 the leaders of the industry also argued that the premium case is virtually self-financing, with likely sales to increase revenue from VAT from 1 to 3,000,000,000 - or 2000 car purchase.
After similar schemes encouraging drivers to trade in their car for a greener model, sales of Italian cars have increased for the first time in a year, while French sales grew by 8 1 and decrease slowed in Spain, but not all car manufacturers are in favor of Mercedes-Benz has warned that there could be a drop in sales after the initiative ends.
Bonus program for German car breaks extended to meet the business demand Guardian, German scrappage scheme, system.