Following a meeting of EU Commissioners, motor industry executives, ministers and MEPs, the European Commission has announced its support for an EU wide program to scrap older vehicles and promote uptake of more fuel-efficient models.
The scheme, if implemented, would follow similar efforts in Mexico City where taxi drivers are being offered incentives to scrap their aging VW Beetles.
Gunter Verheugen, EU Industry Commissioner, said the proposals would have to be financed by national governments but could operate on a pan-European basis. He warned however that: "We can't have cross-border tourism in this, with consumers criss-crossing Europe to find the highest premium to scrap their old car."
In western Europe it is estimated that 36% of cars on the roads are over eight years old, and even in countries that are perceived to be relatively `high-tech`, such as Germany, hundreds of thousands of vehicles are above fifteen years in age.
While there may be some environmental benefits, the scheme has come about primarily as a response to Europe's ailing car manufacturing industry. Cristian Streiff, Peugeot Citroen chief and head of car industry lobby group ACEA, said west European sales in the third quarter were down 10% and could fall further in the current quarter.
In another move, the Commission also backed the controversial bid from the ACEA for €40 billion worth of `soft loans` which would provide upfront capital to aid manufacturers in meeting emission reduction limits set by the union. The Commission urged the European Investment Bank (EIB) to consider the offer; although it is understood that the EIB are wary of lending such large amounts.
Responding to ACEA's call for government support, Jos Dings, Director of European Federation for Transport and Environment, said: "The EU should be very clear, not a cent of public money should be loaned until the car industry drops its attempts to water down EU fuel efficiency legislation."
LowCVP, Guardian, Travelfootprint
