Auto trade-in scheme lifts German car sales, cuts CO2

FRANKFURT, March 27 (Reuters) - The German state subsidy that pays owners of old cars 2,500 euros ($3,393) to scrap them if they buy a new car in exchange is giving the domestic market a boost while helping to cut carbon dioxide (CO2) emissions.

The German auto importers' association VDIK said on Friday the new car market grew at a double-digit percentage rate in the first quarter despite severe declines in other developed countries.

Average CO2 emissions for all newly registered vehicles fell to 154.7 grams CO2 per kilometer in February 2009 from 164.9 g/km last year, the association said.

The share of newly registered cars that spew out less than 140 g/km jumped to 37 percent last month from 25 percent in 2008. (Reporting by Christiaan Hetzner)