The Dutch capital Amsterdam announced on Wednesday a cash bonus of up to €1000 ($1400) for residents who scrap their old cars to buy newer, environmentally friendly ones.

From October 1, "Amsterdammers who scrap their old cars and buy a cleaner alternative ... can get a bonus of between €250 and €1000 the city said in a statement.

Six-million euros had been budgeted for the project on top of a scrapping bonus issued by the national government recently of up to 1,750 per car in a bid to boost the automotive industry amid the global economic crunch.

"In this manner, we help counter the recession and contribute to the environmental sustainability of the city," said Amsterdam councillor Hans Gerson.

Amsterdammers wishing to get rid of their old gas guzzlers without replacing them qualified for a bonus of between €500 and €1000 — but this applied only to the worst polluters.

About 14 000 cars were expected to be scrapped as a result of the project, which runs until end-2010, said the council statement.

Other European countries, including Austria, France, Germany and Italy, have introduced similar incentives to boost their car industries.

AFP

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