Sales of new cars in Germany jumped by 28% in August on the year, boosted by a car-scrapping premium that ran out on Wednesday, figures released by the VDA auto federation showed.
The euro5 billion incentive program for new car buyers willing to scrap their old autos ran out early Wednesday, having given the economy a shove forward during the recession. Germany’s federal office of economics and export control said in a statement posted on its Web site that it was no longer accepting applications for the program. It estimated some 2 million old cars were exchanged. ?The car-scrapping program developed into an effective support and stabiliser for the German economy,? the office’s director, Arnold Wallraff, said in a statement.
So-called ?cash-for-clunkers? programs surged in popularity across Europe after France introduced the idea in December 2008.
Germany, Italy, Britain, Romania, Austria, the Netherlands, Spain and Serbia have had their own versions aimed at shoring up local automakers. Critics contend the billions of euros in handouts only benefit automakers at the expense of other industries and just delayed a slump in car sales, calling them a gift to voters ahead of September 27 national elections.