The German government program to give cash handouts for trading in your clapped out jalopy for a new car looks like it will be extended. And if they can afford it – why not? The plan was successful in pumping up sales by 21% in February, and I’d argue it’s better than cash handouts to go into slot machines in most states of Australia.
The programme, also called the “environmental bonus,” offers Germans €2,500 to junk their old car and buy a new one. Worth €1.5 billion, it was included in the country’s second stimulus package passed earlier this year.
Car sales have reportedly increased significantly since the scrapping bonus came into effect on February 20, and now there is “department-wide agreement” that is should be extended
Source: The Local / Rheinische Post
April 27, 2009 at 11:27 am
[...] holds up April 27, 2009 — rockingtherecession Perhaps it should be no surprise, what with getting free money for their dodgy cars, but German consumer sentiment is holding up OK at the moment. It’s pretty important for the [...]