2 years old on average a level tends to rise

As during the Balladur Government (1994-1995) and Juppe (1995-1996), the French will receive a bonus of 1,000 euros if they destroy their car in 10 years. But a new condition is added: they will have to buy a new vehicle emitting less than 160 grams of CO2 per kilometre. While the Ministers concerned were quite divided on this issue, wary of this type of measure, Nicolas Sarkozy chose wide option, given the seriousness of the crisis which stirs up the automotive sector and its ripple effect on employment.

Forgotten, in part, the ecological criteria that supported the from the Grenelle environmental incentives, a year ago: the new premium of 1,000 euros (which clears another premium of EUR 300 little-known and little used by the French), valid until the end of 2009, will be granted to purchasers of the most virtuous models, rejecting less than 130 grams of CO2but also to all vehicles receiving bonus or malus, is between 130 and 160 grams of CO2. The device is also extended to light-duty vehicles, a niche on which French manufacturers are very present. The choice to grant this aid for older cars more than 10 years, and not 15 years as before (with the bonus of 300 euros) is also important: in France, cars in circulation are 8.2 years old on average, a level tends to rise. And a third of the total fleet (30.5 million passenger cars) has more than 10 years.

"Strong initiative".

Despite these broad eligibility criteria, the Government seems to be very careful on the financial weight of the device: it considers that it will cost only 220 million to the State by the end 2009, the cost of the premium case being offset by revenues from VAT on cars sold it. This amount, it should be added the deficit of the system of the unemployed, still unable to balance, which may represent some 260 million euros this year.

After the presidential announcement, the French builders yesterday had their great satisfaction. "These measures are in the right direction, they are very positive to revitalise the sector," judge Carlos Ghosn, pattern of Renault, which qualifies the premium in the case of "very good initiative". His counterpart from PSA Peugeot Citroën, Christian Streiff, "welcomed with confidence these measures that are well adapted to boost demand and support the whole of the sector.

The NFPC is doubtful

According to estimates of the President and CEO of Renault, premium case should limit the decline of the French market to approximately 5 on the year 2009 instead of 15 without it. In good merchant, he took yesterday to announce additional measures to the Government's plan: Renault will itself, in its network, a premium equivalent of 1,000 euros to customers who would abandon a car between 8 and 10 years for the purchase of a new car and even a recent occasion. And the pattern of the group to the diamond of bounce, calling his wishes of similar measures in other European countries. Because two French manufacturers suffer more today of the collapse of the neighbouring markets (Spain, Italy, Great Britain) and the decline of the hexagon. In November, the West European market decreased by 25, according to firm Global Insight.

On the other hand, the national Council of the professions de l'Automobile (CNPA), umbrella including dealers, remains doubtful: "strong"balladurettes"and the"juppettes"experience," which, in their term, led to a decline in the market, he asks "that reflection be initiated without delay on the sustainability of this premium and its extension to the recent vehicles".