Russian Government Considering Revival Of Cash For Clunkers Program

Cameron Aubernon
by Cameron Aubernon

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.

Cameron Aubernon
Cameron Aubernon

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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  • Jpolicke Jpolicke on Aug 26, 2014

    Now is a particularly convenient time for the gov't to reopen this program; with European imports being blocked maybe they can induce people to go for the domestic product. Not sure if 50,000 rubles is enough of a bribe, though. It will probably drive buyers to Asian brands.

    • Challenger2012 Challenger2012 on Aug 27, 2014

      Ford has one plant in operation in Russia and is building a second. I think GM has a plant there as does a French car maker.

  • Gtem Gtem on Aug 26, 2014

    As I recall, during the last round of Russian CFC, the cars the saw the biggest boost in sales were the old RWD 'classic' Ladas. Seeing as folks that took advantage of the program were oftentimes driving basically an identical but very worn out Lada, the 50k rubles was a substantial percent of the cost of a replacement 'Zhiguli.' The Lada Granta is supposed to take the place of the fwd Samara and the rwd Lada 2105/2107 cars, but there is a very real price increase that many folks just can't muster. Many people are very saddened by the discontinuation of the old RWD cars. For the poorer population in rural areas, they were just the ticket. Many of my relatives in Siberia were stalwarts of the old Moskvitches (IZH 412), those leaf sprung rear axles can withstand quite a load of potatoes!

  • Gtem Gtem on Aug 26, 2014

    Interesting to note: Of the 17 cars I can make out in that image, here is how it is broken down numbers wise: 6 VAZ 2106 3 VAZ 2101 2 VAZ 2105 2 AZLK 2141 "Aleko" 1 IZH 412 "Mosckvitch" 1 GAZ 3110 Volga 1 GAZ 24 Volga 1 VAZ 2109 "Samara" Matches pretty well with what the Russian domestic passenger fleet is made up of, the 2106 is hands down the most common model.

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    • Sjalabais Sjalabais on Aug 28, 2014

      @gtem Can I ask: How would you go about to find a nice, used GAZ 24?

  • Wmba Wmba on Aug 26, 2014

    Vlad the Conqueror has decreed "We shall have another Cash for Clunkers. Let it be so." One more step on the march to glory. And the man is popular at home, basking in it, even as $75 million of prime Canadian pork was refused entry, due to his retro-sanctions on countries sanctioning Russia. Mind you, we have a Mouse that Roared Prime Minister here in Canada, shouting insults at Russia from behind the safety of the US armed forces' skirts. Easy to talk tough when the consequences are minimal. No wonder Vlad thinks our PM is a lightweight dork with a big mouth. And you should see our Beaver tooth Foreign Minister - he actually thinks he's important too. Embarassing..

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    • 05lgt 05lgt on Aug 27, 2014

      @28-Cars-Later Nope, it's the ethanol mandate.