Germany mulling incentives for people to scrap their old cars to stimulate auto industry.

[TheMightyFavog]

http://www.spiegel.de/international/business/0,1518,603233,00.html

It's almost a sport in Germany these days to criticize Berlin for its erratic attempts to confront the worsening economic effects of the ongoing financial crisis. Chancellor Angela Merkel isn't doing enough, her critics say. The country's two stimulus programs amount to a random collection of spending plans, say some observers, not a strategic approach to the economic storm.

But one aspect of the second stimulus package, which has not yet been passed into law, looks like a rousing success. The package foresees granting €2,500 ($3,250) to people who elect to junk their current automobile, provided it's at least nine years old, and buy a new (or slightly used) car. Interest has been intense.

(snip)

The aim of the program is to boost sagging automobile sales in Germany. A number of factories, including Ford and Audi on Friday, have announced that they are slowing production due to slow demand. Car sales in Germany in 2008 hit a 17 year low, primarily because of a miserable fourth quarter.

(snip)

Originally, the plan to promote the junking of old cars was advertised as one that could not only improve car sales, but would also help the environment. Rules governing greenhouse gas emissions have strengthened in recent years, meaning that replacing older cars with newer ones, so goes the logic, would help the environment. Critics, though, say the environmental effects will be minimal at best -- and suggest that a bonus should be also given to those who decide to junk their car and switch to public transportation.

[liberal N proud]

1. I think it is a brilliant idea

It would work here in the US.

1. It will put people to work. Say I am sitting on the fence about a new car. I can afford one but I am af aid to make the purchase because of the economy. Give me little push, a few thousand dollars incentive to make that purchase.

It might be just enough to make that jump.

2. Me and thousands of others in the same position will stimulate the Auto Industry putting people back to work. That in turn creates more jobs and the cycle is now in a positive swing.

3. Old gas hogs could be replaced with more efficient vehicles. (IF THEY WERE AVAILABLE)


In order for it to work, it would have to be mandated that the purchase has to be a vehicle made in the US.

[TheMightyFavog]

3. What vehicles are made in the US anymore?

Most of the cars put out by the Big 3 are made in Canada or Mexico.

[liberal N proud]

5. I know that GM still has a plant in Lordstown, OH

Chrysler/Jeep plant in Toledo, OH

Corvette is made in Kentucky

There are many others.

[ogneopasno]

6. Well, no, you're wrong. But you can check the UAW Web site to answer your own question.

[Ilsa]

2. We should open trade with Cuba. I hear they may need some new cars there. nt

[izquierdista]

4. But, but, but.....

My 1980 Benz is just getting its second wind......

[TheMightyFavog]

7. German DUers can help me out here but...

IIRC, didn't Germany have a similar program in the 90s encouraging Germans to scrap thier Trabants (Old East German cars powered by a blue smoke belching two stroke engine) in exchange for financial incentives for buying a new car?

I seem to recall seeing this on an old episode of Scientific American Frontiers.