Exceeded All Expectations

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Exceeded All Expectations
Exceeded All Expectations

The “Bares für Rostlauben” campaign in the USA was a great success. The promotion expires on this Monday. President Barack Obama was more than satisfied.

After its unexpectedly great success, the US government is allowing the scrapping premium based on the German model to expire this Monday - two months earlier than originally planned. The reason: Despite a recent increase in funding, the fund is almost exhausted and the pot will be empty after an expected final rush this weekend. In an interview on Thursday (local time), President Barack Obama called the program a “success that has exceeded all expectations”.

457,0000 cars sold

According to the ministry, around 457,000 cars have been sold between the start of July and Thursday thanks to the state bonuses as part of “Cash for Clunkers”. That is a total of 1.9 billion dollars (1.27 billion euros) in rewards. Only outright petrol guzzlers could be exchanged, and the subsidies of $ 3,500 or $ 4,500 (about 2,440 or 3,140 euros) were conditional on the new cars being more economical and thus more environmentally friendly.

The demand for the program in the USA was so great that the one billion dollars initially earmarked for funding was used up just a few days after it was launched. Congress then decided in no time at all to increase it to three billion dollars. The enormous onslaught, meanwhile, has left the government behind in reimbursing retailers. So by Thursday only $ 145 million or seven percent of the requested $ 1.9 billion had been paid out. Several dealers have now dropped out and are no longer participating in the program. (dpa)