Industry minister confirms an end to the scheme is near
14 July 2009

France will gradually begin to phase out its scrappage incentive scheme, according to the country’s industry minister.

Christian Estrosi said the French government was now looking to wind down the scheme, despite its success and warnings from Renault CEO Carlos Ghosn.

Ghosn said any withdrawal of scrappage schemes would cause a huge shock to the market and new car sales would tumble once again. Instead, Ghosn said a gradual withdrawal was necessary.

Renault: “No recovery until 2011”

Estrosi said, “The scrappage subsidy cannot be indefinitely maintained. We have to think about stopping it progressively. We're working on it.”

The French scrappage scheme was introduced as part of a wider fiscal package designed to boost the economy.

New car sales were up 7.1 per cent in June, and around 200,000 (or 20 per cent) of the new cars sold this year in France have been generated by the scrappage scheme.

Twitter - follow

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK
  • Volvo V90
    First Drive
    19 October 2017
    The Volvo V90 is a big estate ploughing its own furrow. We’re about to see if it is refreshing or misguided