Successful scheme will not be extended again
25 August 2009

Germany has ruled out extending its scrappage incentive scheme, despite its vast success.

New car registrations rose in July by 29.5 per cent year on year, thanks to a deal where owners trading in a car more than nine years old receive a grant of 2500 euros (£2200) towards a newer model.

The German government has extended the scheme once before to five billion euros (£4.35bn) but it has now confirmed there are no further plans to extend the scheme.

Ulrich Wilhelm, a government spokesman, told a news conference, “The environmental [car-scrapping] bonus will not be extended.”

Reports inside Germany have claimed that the government was considering tax incentives for new car purchases once scrappage ended, but these were ruled out by Wilhelm.

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