France Might Extend Scrapping Incentives

Similar to other countries around the world, France has established a scrapping scheme supposed to boost new car sales and maintain the local carmakers above the floating line. Obviously, the campaign helped the auto sector a lot so the French officials are now wondering whether it would be a good idea to extend the program beyond December, the date when it is first due to expire.

According to a report by Reuters, such an option is currently analyzed by officials involved in the matter, with some voices hinting the program will be indeed extended after the December deadline.

"We are discussing it, but it will probably be prolonged. It has been hugely successful," Budget Minister Eric Woerth said on Tuesday.

Renault is one of the first companies that called for support from the French government, no matter if it was offered in the form of state loans or scrapping schemes. The state of France approved in early February a 3 billion euro package for the local carmakers, especially to encourage them concentrate their efforts on green technologies and more fuel efficient vehicles.

Renault for instance announced at that time that it will launch five new models plus a brand new engine by the end of 2012. These goodies will be accompanied by a full-electric car but only if the market conditions require it. However, several electric concepts are likely to be unveiled at the next car shows.

“We are very pleased with the loan granted to us by the French government. In light of the exceptional crisis impacting our entire industry, access to credit was indispensable for supporting our activity and that of the automotive industry. It will also enable us to pursue our developments and investments in sustainable mobility,” Carlos Ghosn, President of Renault, said at that time.