France announces car scrappage incentives as part of economic stimulus package
Fri 05 December 2008
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The French Government has announced that it will provide a €1,000 bonus for people scrapping an old car or van and buying a new fuel-efficient replacement. The announcement is part of a broader Government plan to help stimulate the French economy.
According to a report in the Financial Times, the scrappage scheme will cost the French Government €220m next year.
The package otherwise provides little other direct support to the car industry – which employs 700,000 people in France, including suppliers. The French President, Mr Sarkozy, did however speak of more direct help if the US government produces an aid package for its carmakers.
Mr Sarkozy said the overall €26bn package would “make a massive effort on investment” rather than boost consumption.
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