Cash4Clunkers, China Style
Clunker culling is spreading faster than the swine flu. Throughout the world, governments are putting bounties on aging autos. Of course, all for the noble cause of greening the planet. China has come out with a surprising new twist. On May 19, the Chinese government had announced the mother of all clunker culling initiatives. They would not only give cash to consumers who replace their old cars. No, they also offered money for the replacement of washing machines, TV sets, and additional abominable atmosphere attacking appliances. Today, China’s government issued a new edict: Buyers of small cars may not apply. Cash for clunkers is only handed out if you trade in your ancient ride for a new car with a displacement of 1.6 liters or larger, Gasgoo reports. Anything, as long as it’s bigger than 1.6 liters.
Shen me? (Excuse me?)
“There’s no replacement for displacement” is getting a whole new Chinese meaning. Well, it turns out that smaller displacement vehicles already had their sales tax halved from 10 percent to 5 percent, which resulted in a huge boom in first quarter auto sales in China. The increase in sales was—not unexpectedly—mostly in the smaller models.
Now, the powers in Beijing decided to do something for the bigger bore buyers also, in the name of fairness. After all, officially, China is still a socialist country.
Buyers of smaller cars still enjoy the reduced purchase tax. If you want something bigger subsidized, you must trade in something old. Makes sense, because if you already own a higher displacement vehicle, you are unlikely to buy down.
At least, if you are Chinese.
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Rastus: Why, you want to help reduce the world's second largest (behind Pakistan) death row population? Can't do that. They are (mostly) Americans with rights.
Who said anything official like "death row". I'm talking about driving down an alley way, rounding up anyone within distance who looks somewhat healthy...and killing them on the spot. You know....CHINA!! ("Death Row"...give me a break. haha).
I wonder if this will increase the amount of clothes dryers? My apartment in China is Shanghai-pimp. Dryer, dishwasher, oven, and a big fridge; I can almost use my major appliances as pick-up lines.