France Asks Carmakers to Help Pay for Scrappage Scheme

The French government will ask carmakers to help fund its 10-month-old scrappage program for old cars.

Finance Minister Brun Le Maire tells Le Parisien that he and Environmental Minister Francois de Rugy will meet with carmakers beginning today to discuss ways for manufacturers to participate.

France’s “climate solidarity package” incentive program began on Jan. 1. The initiative aims to improve air quality by encouraging owners of older cars to swap them for cleaner new or used gasoline, diesel or electric vehicles. Reuters says the scheme has attracted more applicants than funds to cover them.

The offer applies to vehicles that weigh less than 3.5 metric tons (7,700 lbs) and were first registered before 1997 for gasoline vehicles and before 2001 for diesels. The plan pays eligible owners as much as €2,000 ($2,300).

Reuters says the French government expects to raise its own funding for the program by €40 million ($46 million) to €610 million ($695 million) by raising taxes next year on diesel fuel and gasoline by 6 cents and 3 cents per lister, respectively.