The German business of Ford Motor Co. saw a sharp 14.2 percent increase in January sales as a result of the German government's "Environmental Bonus" program, the company said Wednesday.

The Cologne-based unit said January sales in Germany rose to 15,500 cars, increasing its German market share 2.1 percentage points to 7.7 percent.

Last month the German government announced an Environmental Bonus program that provides buyers with euro2,500 ($3,225) if they scrap their old car and buy an environmentally friendly new one. The program, which has euro1.5 billion earmarked, has lead droves of people to car showrooms.

Europe's largest carmaker, Volkswagen AG, said Wednesday it also saw an increase in sales due to the government program.

Ford said its small models like the Fiesta and Focus were most popular.

However, Ford said its sales across all of Europe declined 24.6 percent in January to 112,000 cars.