Are Citroen Taking A Cue From Italy?

Earlier in the year, the Italian government took a step to help an ailing automotive industry and the environment in one measure. They offered a cash-back type deal for people that traded in their polluting old motors for a more economical, new car.

Worth £2000 Cash?

Worth £2000 Cash?

It meant massive surges in demand for smaller cars like the new Fiat 500 and helped get some smokey, gas guzzlers off the roads at the same time. While the government in the UK hasn’t done anything as concrete yet and any financial decision made is under huge press scrutiny, Citroen have decided to do it themselves.

The French car maker is offering cash incentives to customers that trade in their old cars to be scrapped. If the car was registered before 2000, customers are being offered £2000 and, on those between 2000 and 2002, £1000 though with obligation for the second grouping to be scrapped – there’s good money for dealers in used Citroen cars after all. 

France, Spain and Germany already have such schemes – in Germany it kicked car sales up by 21% in February and here automotive bodies are lining up to get behind it. 

While it may be well supported and good for the environment too, the real question is whether a £2000 cash incentive for your old car (on top of whatever offers they’re already running) will encourage you to buy a new Citroen? Should this be something all manufacturers do or a government-run scheme instead?

Personally, I think it would be more effective than a bailout arrangement – what’s the point of building lots of cars if customers don’t have the incentive to buy.

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