General Motors Canada is offering up to $3,000 to customers who take advantage of Ottawa's Retire Your Ride car scrappage program by buying a new GM vehicle.

The U.S. Cash for Clunkers program offered Americans up to $4,500 US if they traded in an older gas-guzzler for a new, more fuel-efficient vehicle.

Pontiac G6 and Chevrolet Malibu automobiles are shown at a GM plant in Michigan in April. The company's Canadian wing unveiled a $3,000 incentive to get people to trade in their old cars for a new GM model on Wednesday. (Paul Sancya/Associated Press)

Automakers credit the program for recent big sales increases in the U.S. Official data show in excess of 700,000 vehicles were traded in under the program.

Since it was launched in June 2008, the Canadian Retire Your Ride program has offered consumers rebates of up to $300 to retire their older polluting cars and buy new vehicles.

Initially, Ottawa had hoped to see 50,000 vehicles turned in under the program. In July Environment Minister Jim Prentice said something in the neighbourhood of 30,000 to 40,000 had been turned in so far, and the government was considering expanding the program.

"We're assessing it now. Certainly any changes we make would come into effect this fall," he told CBC News at the time.

Depending on the purchase price, GM rebates of $500, $1,000, $2,000 or $3,000 will be issued towards eligible 2009 or 2010 GM vehicles in addition to the incentives available through the federal program, the company said Wednesday.

GM joins Ford, Chrysler and Hyundai in offering an expanding rebate program to Canadian car buyers.

To qualify for GM's program, the retiring vehicle must be 1995 model year or older, in running condition, registered and properly insured for the last six months, or 12 months in British Columbia.