Germany has extended its scrappage scheme to cover up to two million vehicles.

The original plan was to allow for 600,000 vehicles, this was then revised to 900,000 vehicles, but now the German government has increased its budget for scrappage from €1.5 billion to €5bn (£4.5bn).

German car buyers are paid €2,500 (£2,260) for scrapping a car which is at least nine years old in exchange for a car which is no more than a year old.