Germany Denies Reports of New 'Cash for Clunkers' Scheme

The German government isn't planning a new car-incentive program to replace its €5 billion ($7.2 billion) cash-for-clunkers scheme, which runs out later this year, government spokesman Ulrich Wilhelm said Monday, The Wall Street Journal reported. He was speaking after local newspaper Handelsblatt reported that the ruling government's grand coalition parties are working on a replacement for the car-incentive program, spurred by fears that car makers and suppliers will suffer when the program ends. According to the newspaper, party officials have suggested giving car manufacturer employees higher tax breaks when purchasing company cars. Germany led the way with a car-scrapping plan that started at the beginning of the year to help its ailing car industry, which provides jobs to one in seven German workers. Its program provides a €2,500 subsidy for each consumer trading in an old vehicle, capped at a total of €5 billion, which is due to run out by the end of this year. The scheme, which provides subsidies for all car brands, has been replicated around the world. Read more. (Subscription required.)