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| German car scrappage scheme ends | German car scrappage scheme ends |
| (about 3 hours later) | |
| Government funding for the German car scrappage scheme has run out, marking an end to a scheme that has provided a much-needed boost to car sales. | Government funding for the German car scrappage scheme has run out, marking an end to a scheme that has provided a much-needed boost to car sales. |
| The 5bn-euro ($7.1bn; £4.4bn) scheme has encouraged almost two million motorists to scrap their old car and exchange it for a new one. | The 5bn-euro ($7.1bn; £4.4bn) scheme has encouraged almost two million motorists to scrap their old car and exchange it for a new one. |
| The scheme helped boost car sales by 28% in August compared with a year ago. | The scheme helped boost car sales by 28% in August compared with a year ago. |
| There are concerns that car sales will now fall sharply without the government funded incentives. | There are concerns that car sales will now fall sharply without the government funded incentives. |
| Many major economies have introduced scrappage schemes to boost sales, including the US, France and the UK. | |
| Last week, the "cash for clunkers" scheme in the US also ran out of cash after the government spent $3bn in a matter of weeks. | Last week, the "cash for clunkers" scheme in the US also ran out of cash after the government spent $3bn in a matter of weeks. |
| In the UK, more than half of the £300m set aside by the government has been spent. | In the UK, more than half of the £300m set aside by the government has been spent. |
| Waiting list | Waiting list |
| The German scheme has been so successful that analysts have said increased car sales played a part in the economy's exit from recession in the second quarter. | The German scheme has been so successful that analysts have said increased car sales played a part in the economy's exit from recession in the second quarter. |
| "The car-scrapping programme developed into an effective support and stabiliser for the German economy," said Arnold Wallraff at the Federal Office of Economics and Export Control (BAFA). | "The car-scrapping programme developed into an effective support and stabiliser for the German economy," said Arnold Wallraff at the Federal Office of Economics and Export Control (BAFA). |
| Under the car-scrapping scheme, German motorists were paid 2,500 euros for turning in a car which was at least nine years old in exchange for a vehicle that was no more than a year old. | Under the car-scrapping scheme, German motorists were paid 2,500 euros for turning in a car which was at least nine years old in exchange for a vehicle that was no more than a year old. |
| Car sales rose to 10-year highs earlier this year, which spurred the government to increase funding from the original 1.5bn euros to 5bn euros in April. | Car sales rose to 10-year highs earlier this year, which spurred the government to increase funding from the original 1.5bn euros to 5bn euros in April. |
| BAFA said it had set up a waiting list for 15,000 people if existing applications were turned down. | BAFA said it had set up a waiting list for 15,000 people if existing applications were turned down. |
| The German car industry, like those in other countries across the world, has been struggling to cope with a dramatic slump in sales during the economic downturn. | The German car industry, like those in other countries across the world, has been struggling to cope with a dramatic slump in sales during the economic downturn. |
| "The most expensive arrangement imaginable would have been to do nothing," said Foreign Minister Frank-Walter Steinmeier, who championed the plan. | |
| But he ruled out any further extension to the scheme, saying that it was not possible "to carry on endlessly using the same instrument". |