THE car scrappage scheme that allows drivers to trade in bangers in exchange for a discount on a newer model was slammed by the ECB yesterday.
Europe’s central bank said the benefits from the scheme had been limited and that its withdrawal could hurt the economy next year.
But its comments came as the European Automobile Manufacturers Association (ACEA) released figures showing that new car sales for September around Europe had surged by 6.3 per cent year-on-year to 1.39m.
The ACEA said that demand had picked up in Germany, France, Spain and in the UK.
The data showed a 6.6 per cent decline in sales for the first three quarters, however.
Eleven of Europe’s member states have introduced a scrappage incentive in a bid to encourage drivers to spend in the slump, but the funding for many will run out soon.
The Western European car market rose 9.6 per cent last month, the biggest jump since 1999, ACEA said. But September registrations are at their lowest levels since before 2002.
The German market posted the biggest gain, up 21 per cent for September, while Spain posted an 18 per cent increase as its incentive scheme nears its end.