5 Sep 2009

Germans rush to take advantage of car-swap scheme

5:12 pm on 5 September 2009

Government funding for a German car scrappage scheme has run out, after boosting car sales by 28% in August.

The $9b scheme encouraged nearly two million people to scrap their old car and exchange it for a new one. A last-minute rush brought a daily average of 9000 applications.

Volkswagen was one of the biggest winners, as people tended to buy small cars.

The Federal Agency for Economy and Export Control says the scheme stimulated consumer spending and helped lift Germany out of its worse recession since World War II.

There are concerns, however, that car sales will plummet next year because people simply brought forward their purchases to make the most of the scheme.