Russian Government Considering Revival Of Cash For Clunkers Program
In an effort to combat plunging auto sales, the Russian government is deliberating on a decision to bring back its cash for clunkers program, last seen sending Ladas, Volgas and GAZs to the crusher back in 2010.
Just-Auto reports current geopolitical conditions — Ukraine, Crimea, sanctions by Western powers — are leading the path toward a 25 percent to 30 percent fall in auto sales to date. Thus, the Kremlin is considering bringing back the program, through nothing more has come according to a Ministry of Trade and Industry representative.
The delay of action is also delaying many a consumer’s decision in buying a new vehicle, especially since the original program paid
P50,000 ($1,680 USD in 2010 dollars) for a vehicle 10 years old and over. Consumers are also wondering what vehicles would be available under the new program, as well as engine size.
The 2010 program proved successful, though the Russian government spent up to $2 billion back then for 200,000 vehicles to be replaced with newer models. Whether it wants to do so again may not matter as sales continue to fall.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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