New car sales in Italy are set to fall sharply this year as the Italian government has indicated that it will not be renewing scrappage incentives for car purchase.

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The Italian minister for economic development said this week that the government was moving away from renewing the programme.


Fiat warned that car sales will drop by 350,000 units in Italy this year without the programme.


JD Power Automotive Forecasting is revising its forecast for the Italian car market in 2010 down to 1.92m  from last year’s 2.17m units. It had previously forecast a flat market under the assumption of continuing incentives.

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