Brussels - The environmental group Greenpeace said on Thursday that the burgeoning schemes encouraging European consumers to scrap older cars did not address fundamental problems in the auto sector and wasted taxpayers' money.
"The schemes will not increase the competitiveness of the car sector, nor will they benefit the climate, the environment or road safety," Greenpeace said in a letter to EU Industry Commissioner Guenter Verheugen. A growing number of countries are offering scrap incentives to encourage drivers to ditch old cars for more fuel-efficient models. The "cash for clunkers" scheme drove up car sales by 40 percent in Germany last month after a 21.5 percent jump in February, making it one of only two markets in Europe to post a rise that month.
The incentives will not resolve overcapacity in the auto industry, Greenpeace said.
"These schemes are designed to encourage consumers to buy cars now, rather than later. But all they are likely to achieve is to cushion the sale slump today, triggering an even greater crash in coming years," it said.
The environmentalists also said carmakers were using the schemes to get rid of stocks of lower-standard models, ahead of new pollution standards that will come into force in September.
"Governments must not squander public funds to renew their national car fleets, unless each subsidised car model has a markedly better environmental and safety performance than the one it replaces," it said. - Reuters