By on August 26, 2014

russias-cash-finished-programme-511.si

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.

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22 Comments on “Russian Government Considering Revival Of Cash For Clunkers Program...”


  • avatar
    Onus

    Only 50,000 rubles. Seems like a raw deal to me. Though 50,000 rubles is damn good monthly salary. But, when cars cost 600,000+ it doesn’t seem like much.

    Interest rates are quite insane in Russia and probably more so now. I’d have a hard time buying a car if i was in that situation as well. Last time i asked cars were something like 20%.

    • 0 avatar
      highdesertcat

      But, hey, they are welcome to it! Just look at what the American CFC has done for us! More foreign brand vehicles were sold than domestic.

      And with Putin having put the kibosh on most foreign imports, coupled with the meaningless, limp-wristed “sanctions” put on by the West, domestic-brand sales in Russia should go through the roof.

    • 0 avatar
      stanczyk

      ‘Interest rates are quite insane in Russia and probably more so now’ – just wait until banksters from FED will let rise the ‘rates’, the ‘bubble will burst’ and dollar will go down..down.. ;
      .. than you will start to import good old Ladas from Russia .. :)

  • avatar
    cronus

    $2 billion for 200,000 cars is $10,000 per car. If they gave the owner $1680, where did the other $8320 go? Or is this one of those Russian things where you don’t ask questions?

    • 0 avatar
      challenger2012

      Come with us. Comrade Putin would like to talk to you. Siberia is nice this time of year.

      • 0 avatar
        gtemnykh

        Actually, being from Siberia, it is rather nice this time of year!

        • 0 avatar
          challenger2012

          Preveiot (my attempt at the Russian greeting) I can’t top that statement. I was in Russia on the Black Sea during the summer of 2007, and it was very nice. I was at a GAZPROM site that pumped natural gas across the sea into Turkey. Where I stayed, the food was good and the girls beautiful. I saw plenty of Ford cars there i.e. the Focus, Fusion and the Escape (called the Ranger). I saw surprised by the number of people holding signs by the road advertising renting of rooms in their homes to tourists.

  • avatar
    -Nate

    Ask questions if :

    you never want a car , to loose your job and that crappy apartment….

    -Nate

  • avatar
    jpolicke

    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.

  • avatar
    gtemnykh

    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!

  • avatar
    gtemnykh

    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.

    • 0 avatar
      Synchromesh

      I’ve been tempted to buy a Lada here. If only CA didn’t have silly 1976 emission cut off!

      • 0 avatar
        NoGoYo

        I like oddball cars and the Lada is a hell of an oddball.

        It’s also, as far as I know, the only Soviet-era car to outlive the Soviet Union.

        • 0 avatar
          gtemnykh

          No way, plenty of other small car makes from the Soviet Era outlived the Soviet union:

          ZAZ-968M – 1966-1994
          IZH 412 – 1967-1997
          Volga 2410 – 1987-1992
          Volga GAZ-3102 1982-2009

          • 0 avatar
            NoGoYo

            Wow.

            At least the awful Wartburg and Trabant were dead after 1991. The Lada Riva, later Zappo, and Moskvitch were not great cars, but the Polish, East German, and Czechoslovakian cars were arguably far worse.

            The original Zappo was pretty damned horrid, though. It looked cute, but had some Corvair-esque driving safety issues that the “second-gen” Zappo at least made an effort to fix.

          • 0 avatar
            Sjalabais

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

  • avatar
    wmba

    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..

    • 0 avatar
      PrincipalDan

      Actually food prices are rising in Russia due to the import restrictictions. As any dictator knows rising food prices can be a very effective trigger to revolution.

      Bread and circuses.

      Let them eat cake!

      Though their vodka may be excellent, as was written in the script for Blazing Saddles:

      “If a man drinks and he does not eat, he will die.”

      “When?”


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