German Scrapping Scheme Coming to an End
Some reports, however, stated that the government would not give up on the automotive sector. According to a report by German newspaper Handelsblatt, members of the coalition ruling in Germany are trying to set up tax incentives for auto workers who buy cars, in the hope that by doing so, the expected market fall will be stopped. The report was however denied by Wilhelm, who said the government has no incentive planned for the future.
The German scrappage scheme, although not the first one, was among the most successful and served as an example for most European countries. German new car buyers were given a 2,500 euro bonus when buying a new car, while at the same time trading in their older ones.
Only in July, according to KBA German motor vehicles agency figures, sales in Germany rose by 29.5 percent on the year.
But with success comes controversy. In early August, the German federal criminal office, BKA, announced the beginning of an investigation based on the suspicion that thousands of traded-in vehicles have been smuggled abroad instead of being junked. Initial figures point to some 50,000 vehicles (125 million euros worth in profit) having been transported to Eastern Europe and Africa and resold.
As for future scrappage schemes, it is likely Germany will set up a variant of the current one or some type of tax incentives to encourage the purchase of electric vehicles, as Germany has set a goal for itself: 1 million EVs on the roads by 2020.