France and Spain see improvements in July
4 August 2009

Pan-European scrappage schemes have continued to boost sales, with Spain and France both seeing more positive sales results in July.

Spain had been one of the worst affected markets before scrappage was introduced, with a 45.6 per cent year-on-year drop for April. July’s year-on-year sales were down 10.9 per cent, improved by the 2000 euro (£1700) incentive offered by the government.

In France, car sales were up 3.1 percent in July, with 188,635 vehicles registered. Many manufacturers fear sales could again collapse after scrappage schemes are withdrawn, with PSA CEO Philippe Varin being the latest to voice concern.

Varin said he feared scrappage would end in Germany, the market where it has been most beneficial, after the country holds elections in September.

The scrappage scheme in the US has been extended with an extra $2 billion (£1.2bn) after the initial $1bn (£600 million) ran out.

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