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Politicians want car scrapping money back

AFP/DDP/The Local · 3 Aug 2010, 08:43

Published: 03 Aug 2010 08:43 GMT+02:00

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Altogether the German government allocated €5 billion for the popular programme, enough to fund the €2,500-subsidy for two million new cars. Applicants junked cars at least nine-years-old to get new vehicles with the Abwrackprämie, part of the government’s second stimulus package.

Since then Germany car companies have reported steadily increasing sales, prompting Christian Democratic (CDU) budgetary policy expert Alexander Funk to tell daily Bild that Berlin should call on the auto industry to take part in paying for the programme.

Daniel Volk, member of the CDU’s junior coalition party the pro-business Free Democrats and member of the parliamentary budgetary committee, said German taxpayer should not have to bear the burden for benefiting the industry.

“The auto industry is the great profiteer of the car scrapping premium, for which the German taxpayers carried the costs,” he told Bild. “It is time that the branch takes on a portion of this.”

Meanwhile German luxury car maker BMW said Tuesday that its second-quarter net profit leapt seven fold to €834 million, exceeding market expectations.

Story continues below…

Analysts polled by Dow Jones Newswires had forecast net profit of €674 million at the leading premium auto manufacturer.

AFP/DDP/The Local (news@thelocal.de)

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Your comments about this article

12:19 August 3, 2010 by pepsionice
They pulled in 19 percent VAT on each sale.....so they made their money already. If the government hadn't done the cash-for-clunkers deal....then employees would have been laid off and eventually came to need government funding anyway. Either way....the government would have lost funding. At least this way.....they made VAT off the deal.
17:15 August 3, 2010 by marimay
They want it back so they can give it to Greece.
13:21 August 4, 2010 by Rhinob
Wow. Contracts mean nothing in Germany too, huh? The German government better be careful -- most dealers had a form signed that the customer will pay the price reduction if the Government fails to do so. I wonder if the German auto makers were prudent enough to do this....
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