Ghosn Supports Scrappage Plan to Boost Car Demand

European governments will need at some point to offer new scrappage schemes to revive the region's moribund auto sales, says Renault CEO Carlos Ghosn.

But Ghosn tells reporters in Portugal he doesn't expect such actions which also would encourage demand for fuel-efficient models during the next three years.

Earlier this month Ghosn urged European governments to ease austerity measures, which raise taxes and eliminate jobs, thus eroding vehicle sales.

Europe's auto volume fell to a 17-year low in 2012 and is expected to drop 5%-10% this year. That would mark the region's sixth consecutive year of declining volume.