Spain Extends Sales Incentives Again

The Spanish government is continuing its successful old-car scrappage scheme to the end of 2014, Reuters reports.

The €1 billion-plus plan, now being extended for the seventh time, gives consumers a subsidy worth €2,000 if they scrap an old car and buy a new one. The government and carmaker each pay half the cost of the incentive payment.

Spain launched the stimulus program two years ago. Industry group ANFAC credits the plan with stabilizing the country's collapsing car market and contributing to strong sales growth over the past 14 months.

Car sales in Spain rose 3% last year to 722,700 units. Volume through the first nine months of 2014 rose 17% to 640,800 vehicles, according to Europe trade association ACEA.