April 20, 2009

Britain may be the next to join a growing list of European governments that have launched special stimulus programs aimed at boosting the stalled auto sector.

According to a report in The Times of London, British Chancellor of the Exchequer Alistair Darling plans to present a draft of a “scrapping scheme” modeled after Germany’s successful ‘Cash for Clunkers’ program when he presents his budget on April 22.

British officials have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal, and Spain also have stimulus programs in place for carmakers suffering from the credit crunch and global financial crisis—and the success of these stimulus efforts has been significant.