French car registrations lifted by bonus

New car registrations in France are on track to rise 10 percent this year as a cash-for-clunkers plan designed to promote sales of less-polluting vehicles helped lift the industry to a new record, France’s industry minister said Monday.

New car registrations will reach 2.27 million this year, the best result since 1990, French Industry Minister Christian Estrosi said in a statement.

Estrosi said the increase “clearly separated” France from the rest of the European car market, which is set to finish the year on a flat pace.

France introduced the plan in 2008 as part of new environmental measures, offering French car buyers a euro1,000 (US$1,440) bonus when buying a new car. That helped lift sales of carmakers Renault and PSA Peugeot Citroen in 2009.

The bonus is scheduled to come down to euro700 in the first half of 2010 and euro500 in the second half.

[adrotate group=”4″]