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German Demand for New Cars Outstrips Supply

By Kevin Spak,  Newser Staff

Posted Mar 28, 2009 7:00 PM CDT
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(Newser) – German auto dealers are mulling a problem that their counterparts around the world would love to have: A crushing demand for new cars. New auto sales shot up 21% in February, and could go higher this month, the Christian Science Monitor reports, thanks to the government’s “scrapping bonus,” which gives consumers about $3,300 if they return their old car and buy a new one.

Now the wait for a new car at many dealerships can stretch on for months. “We thought we had enough for the whole year,” said one Ford salesman. “Back in December, we would never have imagined anything like this.”

Thanks to a government plan to reimburse used car owners for their old vehicles, German car dealerships are inundated with buyers.
Thanks to a government plan to reimburse used car owners for their old vehicles, German car dealerships are inundated with buyers.   (Shutterstock)
In this Feb. 13, 2009 file picture, the headquarters of German car producer Porsche are seen in Stuttgart, Germany.
In this Feb. 13, 2009 file picture, the headquarters of German car producer Porsche are seen in Stuttgart, Germany.   (AP Photo/Thomas Kienzle/file)
The Jan 25, 2008 file photo shows an employee of German car producer Mercedes-Benz working on a Mercedes C-class as it rolls off the production line in the plant in Sindelfingen, Germany.
The Jan 25, 2008 file photo shows an employee of German car producer Mercedes-Benz working on a Mercedes C-class as it rolls off the production line in the plant in Sindelfingen, Germany.   (AP Photo/Thomas Kienzle)
In this Jan. 16, 2009 file photo, junk cars are pictured on a scrapyard in Norderstedt near Hamburg, Germany.
In this Jan. 16, 2009 file photo, junk cars are pictured on a scrapyard in Norderstedt near Hamburg, Germany.   (AP Photo/Fabian Bimmer, file)
This Nov. 14 2008 file picture shows workers of German car maker Volkswagen at a production line of the Golf VI in Wolfsburg, Germany.
This Nov. 14 2008 file picture shows workers of German car maker Volkswagen at a production line of the Golf VI in Wolfsburg, Germany.   (AP Photo/Fabian Bimmer)
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COMMENTS
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wwwonderer
Mar 30, 2009 4:58 AM CDT
Seems interesting. How about incentives to get lending happening again. I didn't understand why we (USA) didn't say "everyone with an existing loan your interest is 100% deductible. Anyone that gets a NEW loan in 2008-2010, you get an $xxxxx credit". I mean do auto loans count in the lending credit freeze. Home/real estate loans won't get better until the TRUE price of the assets is known. And that won't happen until the market gets rid of some surplus.

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