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French car scrappage scheme to end


French car scrappage scheme to end


The French government is planning to gradually phase out its scheme to help carmakers through the economic downturn by encouraging drivers to trade in their old vehicles for new ones.

Industry Minister Christian Estrosi said in a newspaper interview that “The scrappage subsidy can’t be maintained indefinitely.” The scheme was introduced last year and has boosted showroom traffic this year. Helped by the subsidy, new car sales in France rose 7.1 percent in June.

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