Russia Launches ‘Cash-For-Clunkers’

Russia introduced a cash-for-clunkers program giving support to trade drivers to sell old cars and buy new ones to encourage a domestic market which is badly affected by the global economic crisis.

Under the experimental program, the government will provide discounts of 50,000 rubles (S$2,350) to those who desires to sell a car which is more than 10 years old in exchange for a new car manufactured in Russia.

Prime Minister Vladimir Putin said that government had assigned 11.5 billion rubles for the program, which is estimated to help Russians pay for 200,000 new cars.

Mr Putin recommended Russians to make the highest of the government help, and also said that the replacement of old vehicles will make the air clear and can save thousands of lives which traffic accidents insist today.

The government program is intended to help the country’s flagship carmaker Avtovaz to encourage its flagging sales, but foreign carmakers assembling vehicles in Russia, including Ford, Renault and Volkswagen, could also benefit.

The economic retardation generated an abnormal crisis in Russia’s crashing auto industry as consumers compressed their belts. Russia car sales descended by 56 per cent last year to 1.4 million vehicles, as per report created by PricewaterhouseCoopers which is released in January.

You may also like to read:
Best Wagon Models For 2010 Consumers
Yuejin Motor Adds Holding In SAIC Motor To 5.5%
Trends in Sedan’s Design
Porsche Introduces Fast And Economical Hybrid Concept Car
Will Auto recalls hit the industry at a crucial time of recovery?
Impact of recalls on Toyota’s Reputation