Financial Times FT.com

Germany extends car scrapping bonus

By Bertrand Benoit in Berlin

Published: April 8 2009 12:42 | Last updated: April 8 2009 12:42

The German government on Wednesday more than trebled the size of its popular car-scrapping bonus scheme to €5bn, bowing to pressure from carmakers and consumers ahead of a general election in September.

The extension of the scheme, which encourages consumers to trade old cars for new, comes after Berlin repeatedly rejected calls from the US and Britain for it to do more to stimulate its heavily export-oriented economy.

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