In the wake of the United State’s recently terminated Car Allowance Rebate System, Russia has announced that it will be implementing a “Cash for Clunkers” program of its own early next year. The plan aims to encourage domestic vehicle sales while emphasizing the environmental benefits of purchasing more energy-efficient vehicles by offering 50,000 rubles (approximately $1,500) for the trade-in of vehicles that are more than 10-years-old towards the purchase of a Russian-made car.
Set forth by Russia’s Industry and Trade Ministry, the program will incentivize car buyers to recycle the 2,100,000 cars that become clunkers each year in Russia. The 50,000 rubles can be used towards the purchase of any Russian made-car, including cars made by companies that have factories in Russia, such as Ford Motor, Renault SA, General Motors, Volkswagen AG and Nissan Motor.
Carrying a out a successful trade-in program will not only help Russia’s economy but will directly affect the country’s carbon footprint as well, though it will not be an easy feat – some analysts assume that consumers will use the incentive money to only purchase cars sold for under 50,000 rubles. However policy-makers are hopeful that this program will boost the economy and put Russia back in the running to become the biggest auto market in Europe.