Washblog

http://news.therecord.com/printArticle/499010

Canada and the U.S. reported dismal vehicle sales numbers in February, but one European country saw sales jump, boosted by a new program that pays consumers 2,500 euros to trade in their old cars.

The German Association of International Motor Vehicle Manufacturers, or VDIK, said 277,700 Germans registered new vehicles in February, up 21 per cent year-over-year. In comparison, Canadian vehicle sales fell 28 per cent for the month while U.S. sales plunged an even more dramatic 41 per cent.

VDIK attributed the improvement in sales to the German government's eco-rebate, which allows consumers to collect the equivalent of more than $4,000 Cdn for exchanging vehicles that are at least nine years old for new ones.

"The decision by the federal government in favour of the eco-rebate has been the right step at the right time, as the recent successes for most international and German automakers clearly demonstrate,'' stated VDIK president Volker Lange.

by eridani on Mon Apr 13, 2009 at 04:05:19 PM PST

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by noemie maxwell on Tue Apr 14, 2009 at 07:48:31 AM PST

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You make a great point.  That would work if  the 'Big Three' had a product worth buying.  Given recent economic times [last 30 yrs], the public has not been given a product worthy of their hard earned dollars. Even if those dollars are from subsidies.
Low cost and efficient products have not been the main stay of their product line. They are too little too late now to get inline. We need to quit throwing money at this problem.

by monam on Tue Apr 14, 2009 at 12:06:14 PM PST

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Not only has big auto not been competitive in the real world, but by dominating the economy of Michigan, they already have pretty well laid waste to much of that state and, as the industry behind 'driving America', utterly ruined Detroit.

Time for the people to cut the losses.  Maybe there will be a more diverse economy for that area to replace big auto.  Startups that can use the talents of the people.

National unemployment compensation or target those dollars to unemployment compensation for the auto workers without requiring them to stay in Michigan.

If I sound cruel, I am speaking as someone who spent much of the period from the mid-80s to the mid-90s in different parts of the state of Michigan working on projects for GM, Ford, the Michigan State Senate and Meijer.  Really great people in eastern Michigan.  Really messed up economy.

by ktkeller on Wed Apr 15, 2009 at 03:41:20 AM PST

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We need no incentives to support automobiles, because by doing so it's a form of subsidy for some companies.  

People need cash in their pockets for necessities, some may need a car but others need food, job training, and many things that are investments in human potential.

Focus on transit.  

If we really want to subsidize more eco-friendly cars, I would not scream.  Just not sure giving people money to by cars isn't just a continuation of encouraging us to buy the next 'new' gadget in a time that we need to consider what the real value is of 'growth' versus a sustainable economy.

by ktkeller on Wed Apr 15, 2009 at 03:50:52 AM PST

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