2010 sales could fall by 25 per cent following end of scrappage scheme
7 December 2009

New car sales for 2010 in Germany could plunge by as much as 25 per cent year-on-year now that the country's scrappage incentive scheme has run out.

Germany is Europe's largest economy and the largest European market for new car sales. Its scrappage scheme was the most generous in Europe, with almost £5 billion in government subsidies being paid out to owners of cars more than nine years old who were scrapping it for a new one.

Scrappage money officially ran out in Germany in September, but sales have continued to rise as cars ordered under the scheme continue to be delivered. But auto industry analyst VDA predicts that sales will begin to suffer in Germany next year when the effects of the scheme finally wear off.

"The domestic car market is going to be tough in 2010," VDA president Matthias Wissmann told a news conference in Germany. "Trees do not grow to the sky."

New car sales in Germany were up 20 per cent year on year for November, bringing the total number sold so far in 2009 to almost 3.6 million units, a rise of 25 per cent on 2008.

Wissmann did predict, however, that manufacturers selling in Germany wouldn't be left with large piles of unsold stock, as scrappage has ensured stock levels are very low and a waiting list is now in place on many popular models.

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7 December 2009

"The domestic car market is going to be tough in 2010," VDA president Matthias Wissmann told a news conference in Germany. "Trees do not grow to the sky."

At what height does the sky officially start then?. I've always thought it was as soon as there was no contact with the ground so therefore trees do grow to the sky!.

As for a collapse in German sales, surely it can't be impossible for the manufacturers to prevent this by coming up with their own incentives for buyers, without the governments help?. Did they never plan for the day when the scheme would end or did they think the scheme would be extended indefinately until the end of time?.

8 December 2009

It's all about getting the most out of something. All the time the demand is there the companies will produce and keep their workforce. the scrappage scheme has just extended the point when large companies will either have to reduce production and lay off workers, hold out the drought and hope they survive or go bankrupt in the process. As for the German quote; Himmel has two meanings in German, Sky and heaven. So did Wissmann mean "trees don't grow to the heavens" which I guess they do not.

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