Cash for clunker program to be extended

Russia is planning to extend its cash for clunker program, with Prime Minister Putin citing the strong reaction to the program as a reason to continue.

“In view of the positive march of events I believe it is necessary to build up the financing of this program by another 10 billion Roubles,” said the Prime Minister, adding, “I will ask for proposals on a smooth departure from this program next year.”

So far Avtovaz has seen the biggest benefit from the program with sales almost returning to pre-crisis levels. According to the clash for clunkers program, owners can turn in their car that is older than 10 years and receive a 50,000 rouble credit towards the purchase of a new Russian produced vehicle.