Think of it as V8 Perestroika.
MarketWatch reports, "Russia plans to boost its struggling car industry by adopting a scheme similar to the so-called cash for clunkers program used in the U.S." Under the program, Moscow will offer discounts of up to 50,000 Rubles (about $1,500) to buyers who trade in a vehicle that is at least ten years old when buying a new vehicle.
Reuters adds, "The rebate can only be spent on Russian-made cars." But that doesn't stop Detroit from benefitting. Both Ford and General Motors have significant manufacturing operations in Russia.
The Cash for Clunkers isn't an American invention. Reuters notes, "Car sales in Germany, France, Italy and Spain have grown recently in response to similar incentives schemes."
Ford has benefitted tremendously from programs in many nations, but the Wall Street Journal reports, "The company has warned that industrywide sales in Europe, the world's second-largest auto market after the U.S., could fall by as many as two million new vehicles in 2010 if the programs are cut off at the end of this year."
Such a program, however, may be much harder to implement and track in Russia. Edmunds Inside Line reports, "At present, about half of the entire Russian automotive fleet is more than 10 years old, while approximately 400,000 cars nominally registered with the country's traffic police have been abandoned or otherwise dismantled. About 7 percent of Russia's 30 million cars become clunkers annually, analysts said, but no attempts have been made to recycle and owners often abandon old vehicles after removing useful spare parts."
If you're interested in the American Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
