Over 90,000 jobs at risk in German car industry

29th August 2009, Comments 0 comments

The study, by Roland Berger consultancy, said that the very successful programme, which gives people 2,500 euros off a new car if they scrap their old one, has only deferred problems for the industry until next year.

Berlin -- More than 90,000 jobs are in danger in Germany's automobile industry as the government's "cash-for-clunkers" scheme comes to an end, a report showed on Friday.

The study, by Roland Berger consultancy, said that the very successful programme, which gives people 2,500 euros off a new car if they scrap their old one, has only deferred problems for the industry until next year.

The scheme has brought "some relief in 2009 to the makers of economy and midsize cars but the incentives will only push the sales problem forward into 2010, unless the real economy takes off again," the study said.

"In Germany alone, more than 90,000 jobs are at risk in the country's automotive industry."

Last month, the government said it would not extend the programme, which has been copied in Britain and the United States, once the five billion euros (seven billion dollars) set aside has been used up.

It has already been extended once and figures on the website of the government agency managing the programme show that fewer than 100,000 applications out of an original two million can still be made.

AFP/Expatica

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