Driving Out of Germany, to Pollute Another Day

Old polluting German cars meant to be destroyed are being smuggled into the developing world, particularly Eastern Europe. Started in January 2009, Germany’s “cash for clunkers” program pays people up to $3,500 to give up an old car for a more environmentally-friendly one. Unlike the US program, which stipulates that engines be destroyed, the German program only requires clunkers to be left at junkyards. This difference has allowed organized auto thieves – abetted by scrap dealers reeling from a precipitous drop in scrap prices due to the economic slowdown – to take advantage of the loophole, smuggling about 50,000 clunkers out of Germany. Such oversight is fuelling the current spike in used car exports. Even worse, some of the cars have found their way back in Germany. More importantly, the loophole that gives the clunkers a new lease on life has effectively sabotaged the ecological motivations for the program. – YaleGlobal