Germany backs big increase in car subsidy-source

BERLIN, April 8 (Reuters) - German Chancellor Angela Merkel's cabinet approved on Wednesday an increase in funds for its car scrapping subsidy to 5 billion euros ($6.60 billion), a government official familiar with the decision told Reuters.

Under the plan, which is part of a government stimulus package aimed at shoring up the economy, owners who trade in cars that are 9 years old or more for new fuel-efficient models receive a bonus of 2,500 euros.

The government had ...