Here's two I'd like to turn in.
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Posted on 06/08/2011 6:57:10 AM PDT by SeekAndFind
SHANGHAI — China has announced a plan to pay up to nearly $2,800 for old vehicles headed to the scrap heap, in a move aimed at perking up slumping sales in the world's largest auto market.
Vehicle owners can get subsidies of between 11,000 yuan-18,000 yuan ($1,700-$2,800) for old farm vehicles, city buses and heavy trucks, said a notice issued today by the finance and commerce ministries.
The plan coincides with reports that China's vehicle sales fell by 14 percent in May from the month before after years of mostly double-digit growth.
China's auto market surged to become the world's largest in 2009, helped by a program to exchange old vehicles, including cars and light trucks, for subsidies to buy new ones. The incentive scheme was introduced to help fight a downturn during the global financial crisis.
Similar to the Cash for Clunkers program in the U.S., it encouraged sales of more fuel-efficient models, spurring sales of small passenger vans used primarily by farm and business owners. That program ended last year.
The new program covers a smaller range of vehicles but includes buses and trucks, which account for a large share of China's overall vehicle sales.
The “early retirement” for vehicles program, the ministries' notice said, is meant to “facilitate travel of urban and rural residents and to promote improved quality of transport, in line with public interests.”
While the plan calls for higher subsidies than the earlier program, analysts questioned whether it would do much to help the market, given the lucrative prices paid for second hand vehicles.
“Car owners can make even more money in the second hand market. So unless they can't sell the vehicles there, I doubt it will do much to boost sales,” said Rao Da, secretary-general of the China Passenger Car Association.
(Excerpt) Read more at 2.timesdispatch.com ...
Right. During a world wide recession, in a country operated, partially at least, by slave labor, you prop up the used car market by diminishing the supply and destroying value. Brilliant. See how dazzling the results are in the United States?
Hey, maybe they’ll go broke, too!
This is normal for commies.
for every yuan they use to subsidize purchase, theres less yuan to buy USD
The irony is light years beyond delicious; now the Chinese are taking lessons in communism from the President of the United States!
Live long enough, see everything...
A few new cars could be let onto the consumer market but being few their value would rise along with every used car.
Automobile owners would be wealthier, jobs increase, everyone wins! Yipeeeeee!!!!
Here's two I'd like to turn in.
RE: Cash for Clunkers?
Here’s two I’d like to turn in.
How much would you take ? :)
The Chinese goevrnment has been screwing around with automobile taxes, fees, licnesing and the like for 3 years.
Across the board tax cuts, targeted tax cuts, changes in the licnesing fees, etc, all to spur demand.
THis year they returned to the old higher tax rate for auto purchases and sales dropped immediately.
http://www.businessinsider.com/china-auto-sales-february-2011-3
I just hope that GM and Ford are positioned in China to reap as much of that money as possible. It’d be nice to see at least some of the money we send to China finally coming back *TO* us.
They must need more steel to build shipe?.
I'm willing to pay!
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