Renault Urges Europe to Revive Scrappage Programs

The government of France and other European countries should reintroduce the "cash-for-clunkers" programs or other incentives to boost flagging auto demand, Renault SA says.

Similar government incentives offered during the recession bolstered sales by luring consumers into the car market. France offered scrappage rebates of as much as €1,000 per vehicle in 2008-2010.

But analysts contend the European market suffered a hangover effect when the programs ended because they had pulled ahead future demand.

Separately, CEO Carlos Ghosn declares he has "absolutely no doubt" that at best, Europe's auto market will stagnate for the next three or four years. Renault's best-case scenario is auto sales growth of zero to 1%, he says.