The German car industry is already feeling first positive effects of an environmental bonus brought in at the beginning of the year, according to the German auto industry association VDA.
A new tax rule, encouraging the sale of newer, more fuel-efficient cars, was already causing a noticeable upturn in new car sales in Germany.
Under the new rule people who dispose of an at least nine-year-old car this year are entitled to a €2,500 bonus when buying a new car.
People are going back into car dealerships, and the willingness to buy cars is growing, according to the VDA.
The German Federal Office of Economics and Export Control, Bundesamt für Wirtschaft und Ausfuhrkontrolle (Bafa), announced on 2/23/09 that more than one sixth of the funding has already been awarded, but there are still 1.5 billion euros available for nearly 600,000 applications.
VW and Opel are the main beneficiaries from this environmental bonus and Opel reported on Monday 2/23/09 that February 09 will be their best month for the last five years in Germany.
© Flavia Westerwelle