The abatement of the attractive 2009 scrappage incentive program in Germany has led to a significant drop in German auto sales, in Germany, but exports of German-made cars appear to have come to the rescue. 

According to reports, orders for German-made vehicles in Germany dropped 16% last month, compared to orders one year ago, and the drop is blamed on the discontinuation of the nation's scrappage program.  January 2010 represented the worst year for sales in Germany over the last 20 years.  According to the VDIK (Association of International Motor Vehicle Manufacturers), only 181,500 new registrations occurred in Germany during January.  Volkswagen was the only manufacturer that scored a plus sales figure during January - about 11% - while Audi, BMW, Mercedes and Ford all saw sales drop between 10 - 20%.  Porsche sales dropped 32%.

Nevertheless, the Germans are still making cars.  Again, according to VDIK, orders from outside Germany for German-made vehicles increased in January by 38%.  In fact, during January, Germany exported 264,500 vehicles to foreign countries, a figure that is up by 18% over the previous January.  The association said that the improved export situation allowed German carmakers to produce 362,700 passenger cars in January 2010, providing hope for the industry that while domestic sales may tank, production levels will remain high in support of sales to stronger foreign markets.