Canadian groups call for car trade program

OTTAWA, June 6 (UPI) -- Car dealers in Canada are calling on the government to provide consumers financial incentives to buy new cars that run cleaner and safer than older models.

If Ottawa introduces a program to get older cars off the road as a way to stimulate the sluggish economy, Canada would follow similar moves by Germany, France and Britain.

"Canada would see immediate economic, environmental and safety benefits from a program that encourages drivers to replace older vehicles with new ones," said Canadian Automobile Dealers Association President and CEO Richard Gauthier.

He said in Germany new vehicle sales increased by 20 percent in April and 40 percent in May. Prior to the introduction of their program, sales had declined by 14 percent in January. Canadian new vehicle sales have fallen by 20 percent or over 141,000 units in 2009 compared to the previous year.

The Canadian Automobile Dealers Association suggested that the government provide consumers $3,500 towards the purchase of a new light-duty vehicle when they scrap or trade in a vehicle that is at least 10 years old.

"A robust scrappage program could increase sales by as much as 100,000 units, which would be a significant benefit to consumers, dealers and their local economies," said Canadian Vehicle Manufacturers' Association President Mark Nantais. "Additionally, today's new more fuel efficient vehicles, are 12 times cleaner than a 1993 model year vehicle and contain the most advanced vehicle safety systems."