Currently reading: Scrappage to cause sales slump
Seat's German boss makes stark 2010 sales predictions

German new-car sales will plunge to a record low in 2010, according to the head of Seat Germany.

Rolf Dielenschneider predicted that annual sales in 2010 would only amount to 2.6 million vehicles, because Germany's successful scrappage scheme has pulled demand forward into this year.

Scrappage boosts Euro sales

The German subsidy gives new-car buyers 2500 Euros (£2150) if they scrap a car that is at least nine years old. The scheme has been hailed a success, with annual sales for 2009 predicted to be between 3.6 million and 3.7 million vehicles.

However, Dielenschneider believes 30 per cent of this year's buyers would otherwise have bought next year, and have simply brought forward their purchase.

"For 2010 we expect a total market volume of some 2.6 million new-car registrations in Germany," he said.

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