Dow Jones reported that French government's car scrapping scheme is likely to have generated 500,000 sales of new cars by the end of 2009.

Mr Patrick Devedjian minister in charge of implementing the French government's recovery plan said that 400,000 cars have been scrapped so far this year because if the scrapping scheme. The scheme offers EUR 1,000 to car owners for scrapping their cars that are at least 10 years old and buying new, more environmentally friendly vehicles.

He said that the government had initially budgeted EUR 220 million to cover the cost of the scheme, which is now likely to cost EUR 500 million. He added that "The scheme has allowed us to save the automobile industry."

(Sourced from www.dowjones.com)