New car sales in Germany increased by 22 percent in February of 2009 compared to February of 2008, with a government incentive plan receiving much of the credit.
According to an Agence France-Presse (AFP) report, a bonus offered to buyers who turned in old cars helped German auto sales make up for vehicle export sales that shrank by 51 percent. The figures were compiled and released by trade group Verband der Automobilindustrie (VDA).
More than 277,000 vehicles were sold in Germany in February of 2009, according to the VDA data. VDA president Matthias Wissmann called the figure “"the strongest level of February sales in 10 years.”
The incentive program offers 2,500 euros ($3,150) when buyers of new cars turn in obsolete automobiles or any vehicles that are considered behind in meeting current emissions standards.
The new surge in demand has helped GM subsidiary Opel increase output at one of its plants because of strong demand for the “super-mini” Corsa compact model, according to the AFP report.
A recent survey of retailers in Germany, including auto dealers, has demonstrated renewed confidence as the program has helped additional cash to circulate through the consumer and manufacturing sectors of the economy.
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