MOSCOW (Commodity Online): After the US, Russia ha started a scheme to boost auto sales. A cash-for-clunkers program to spur vehicle trade-ins began this week in Russia.

The goal is to build a modern auto industry in Russia, including the entire production chain, from the steel sheet to the end product.

The program includes a 50,000 ruble subsidy, about $1,700, for owners of trade-ins at least 10-years old if the owner buys a new car made in Russia.

The program, part of a $20 billion long-term commitment to the industry, is expected to bump Russian car sales up by 200,000 vehicles this year.

The second and fourth largest automobile makers in Russia, respectively, General Motors Co. and Ford Motor Corp, are expected to benefit from the program.

The economic downturn in Russia was especially hard on the auto industry, as the Russian market was accelerating quickly just before the downturn hit and a large percentage of sales in Russia were imports. 

In 2009, 1.4 million vehicles were sold in the country, 56 percent less than 2008, PricewaterhouseCoopers said.
(EUNewsNet.com and OfficialWire)

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