The auto industry is the largest German industrial sector in terms of sales and an important customer of many other sectors. It pays above-average wages and accounts for more than 50% of the total internal and external R&D investments in Germany. This means that it is an important driver of technological progress. It is therefore quite understandable that policymakers become nervous whenever the auto industry appears to be facing difficult times. This has become evident once again in the current corona crisis. Calls for a “green car-scrapping bonus scheme” have become louder. The prime ministers of the “car” states Baden-Württemberg, Bavaria and Lower Saxony plan to meet and discuss the issue today. The car-scrapping bonus scheme implemented in 2009 may work as a blueprint; back then, the scheme helped to prop up domestic demand for cars – and thus support the economy – during the economic and financial crisis. From our vantage point, a car-scrapping bonus scheme is not a good idea in the corona crisis for a number of reasons: Last week, Ralph Brinkhaus, the leader of the CDU/CSU parliamentary group, pointed out that policymakers should maintain a sense of proportion when deciding on support packages. This admonition should be kept in mind when thinking about a green car-scrapping bonus scheme.