In September 2009 the British government decided to extend the funds of the car scrappage bonus to an additional 100,000 vehicles with the aim of mitigating the impacts of the financial crisis on the struggling car industry and to prevent possible lay-offs. This initiative rewards people who want to scrap their old car with a certain financial support for buying a new car. It was first implemented in Germany to protect the backbone of its economy and has also become quite popular in the rest of Europe and beyond. Governments and the industry usually claim that by doing this it not only strengthens the economy but also fosters the reduction of CO2 emissions as less efficient older cars would be recycled and replaced by the more efficient and more environmentally friendly ones.
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