79-What_is_a_scrappage_subsidy - What is a scrappage...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
What is a scrappage subsidy? A scrappage subsidy is a "pay-to-scrap" scheme where a government offers a financial incentive to car buyers if they scrap a car that has reached a specified age and in its place they are offered a payment towards the cost of a new vehicle. Germany and France both offer scrappage subsidies to consumers and there is a growing number of voices from inside the UK business community and motor vehicle industry clamouring for one to be launched in the UK. The Retail Motor Industry Federation and the Society of Motor Manufacturers and Traders (SMMT) are at the head of the queue lobbying for a scrappage scheme to be introduced as soon as possible. Scrappage subsidies have certainly become more popular. Germany offers a Euro 2,500 payment for cars more than nine years old and France offers a Euro 1,000 payment. In the United States, a ''Cash for clunkers' bill is being introduced which offers up to £3600 for US consumers to buy new, more fuel-efficient vehicle assembled in the US and up to £5400 for 100mpg or more plug-in hybrids. Customers buying cars built outside of the country will only receive a maximum of £2900. And in Slovakia where there has been
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/08/2012 for the course STA 2021 taught by Professor Xu during the Spring '11 term at FIU.

Page1 / 3

79-What_is_a_scrappage_subsidy - What is a scrappage...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online