Germany's scrappage scheme has been so successful that it is expected to be extended.
The €1.5 billion already committed to the scheme is predicted to run out in the middle of April.
As a result, foreign minister Frank-Walter Steinmeier has told VW workers in Wolfsburg that more money will be provided if the current economic situation continues.
He said: "If things remain difficult, we will not be able to let go of the only economic stimulus instrument for the car sector."
Steinmeier was responding to a report in German newspaper Rheinische Post that said ministers had agreed to add a further €1 billion to the scrappage scheme should the money run out within the month, as is expected.
New car sales in Germany have risen significantly since the scrappage scheme was introduced.