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Help for the auto industry?

Jeegar Kakkad February 20, 2009 12:33

With the UK auto industry struggling in the wake of the global recession, many factories in the UK are extending their winter shutdowns and laying off workers.

And on the back of news that output is down 60%, Tony Woodley and Derek Simpson of Unite (the trade union) have met with the Chancellor Alistair Darling, calling for £13bn to help the auto industry and struggling manufacturers.

Here's what other European countries have done to boost demand for new cars by giving incentives to scrap older cars:

Country

Criteria Incentive

Boost to market

Austria Over 13 years old  €1,500 to purchase a new car with Euro 4 as minimum engine specification.

e 30,000

France Over ten years old €1,000-2,000 to purchase a new car which is less than 160 g/km or an LCV.

220,000

Germany Over nine years old € 2,500 to purchase a car up to 12 months old with Euro 4 as minimum engine specification.  

400,000

Greece* No age limit €400-800 to scrap vehicle plus €1,500-3,400 if purchase a new vehicle.

e 20,000

Italy* More than ten years old €1,500 to purchase a car which is at least Euro 4 engine specification and emits less than 140g/km for petrol and 130 g/km for diesel.

200,000

Portugal More than ten years old €1,000-1,250 for a car which emits less than 140 g/km.

e 20,000

Romania Over ten years old €1,000 to purchase a car.

60,000

Spain Over ten years old or 250,000 km Up to €10,000 0% loan to purchase a new car or LCV. The car must cost less than €30,000 and emit less than 140 g/km. The LCV must emit less than 160 g/km.

e 100,000

* = proposed scheme
e = estimated figure based on total car market
Source: SMMT

 

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