Renault have revealed they will subsidise sales of its cars in the French home market until the end of February for buyers who are scrapping old vehicles, helping to prop up a buoyant domestic market.
The French government cut the scrappage bonus it pays to consumers trading in old cars for new to 700 euros per vehicle from 1,000 euros as of January 1st but Renault will make up the difference for the next 2 months, the firm’s senior vice president for France, Bernard Cambier, told BFM radio. He also predicted that the French car market will remain strong in the first half of this year.
Things are looking up for Renault, especially in their home market as, combined with their Dacia brand, they have achieved sales growth of over 90 percent in December, compared with 45 percent for the French market overall and their growth for the full year is at around 14 percent, compared with 10.5 percent for the whole market.
It will be interesting to see what Renault and other manufacturers will do to extend the good will once the UK scrappage scheme finally finishes.