PARIS (Reuters) -- France's car scrapping scheme will continue into 2011 as part of a plan to gradually phase it out, Economy Minister Christine Lagarde said on Tuesday.
"We are looking at two fiscal years for the moment, 2010, 2011 in addition to 2009," she told Reuters.
"As successful as it has been...we need to be successful in pulling out ... We are looking at two fiscal years to make it truly gradual."
The current plan was due to expire in December.
France, like most European countries, gave the struggling car industry a major boost by offering car buyers incentives to trade in their old cars and replace them with newer, more fuel-efficient models.
The government is looking to avoid an abrupt end to the scheme, fearing this would provoke a new crisis in the industry, and has previously indicated it would gradually rein in incentives.
Earlier this year, Renault CEO Carlos Ghosn called on France to take this step.
The minister in charge of implementing the government's economic stimulus package, Patrick Devedjian, said last week that the car scrapping scheme had generated 330,000 vehicle sales.