Spain Extends Scrappage Plan Again

The Spanish government says it will add another €70 million in funding to continue a scrappage program it launched in October 2012.

The plan, now being extended for the third time, gives consumers who turn in cars or commercial vehicles that are at least 10 years old a €2,000 rebate when they buy a fuel-efficient new vehicle.

The cost of the subsidy is paid for equally by the government and the vehicle's manufacturer. The new extension will bring the program's total funding to €290 million.

ANFAC, the country's auto industry group, credits the scheme with stabilizing the Spanish car market. Sales shrank 13% to 700,000 units from 2011 to 2012. But they were down only 2% in the first nine months of this year, in part because of a 29% increase in September.