By on May 25, 2009

Clunker culling is spreading faster than the swine flu. Throughout the world, governments are putting bounties on aging autos. Of course, all for the noble cause of greening the planet. China has come out with a surprising new twist. On May 19, the Chinese government had announced the mother of all clunker culling initiatives. They would not only give cash to consumers who replace their old cars. No, they also offered money for the replacement of washing machines, TV sets, and additional abominable atmosphere attacking appliances. Today, China’s government issued a new edict: Buyers of small cars may not apply. Cash for clunkers is only handed out if you trade in your ancient ride for a new car with a displacement of 1.6 liters or larger, Gasgoo reports. Anything, as long as it’s bigger than 1.6 liters.

Shen me? (Excuse me?)

“There’s no replacement for displacement” is getting a whole new Chinese meaning. Well, it turns out that smaller displacement vehicles already had their sales tax halved from 10 percent to 5 percent, which resulted in a huge boom in first quarter auto sales in China. The increase in sales was—not unexpectedly—mostly in the smaller models.

Now, the powers in Beijing decided to do something for the bigger bore buyers also, in the name of fairness. After all, officially, China is still a socialist country.

Buyers of smaller cars still enjoy the reduced purchase tax. If you want something bigger subsidized, you must trade in something old. Makes sense, because if you already own a higher displacement vehicle, you are unlikely to buy down.

At least, if you are Chinese.

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10 Comments on “Cash4Clunkers, China Style...”


  • avatar
    golden2husky

    No, they also offered money for the replacement of washing machines, TV sets, and additional abominable atmosphere attacking appliances...

    Why such a condescending tone? I will be the first to jump on the bandwagon about the foolishness of a clunker bill aimed mostly at moving metal, but the appliance bit really makes sense. The low hanging fruit on the tree is conservation, not hyper costly technology. Nor does this program force anybody to – perish the thought – think about changing their energy intensive lifestyle. Modern refrigerators use half the energy of those 20 years old. These things are in use far longer than that…how many 70’s era units soldier on as second/beer fridges in America’s garages? I much rather see a scrappage program for stuff like this than cars. Cars should be forced off the road only when they become gross polluters, but that’s a topic for another day…

  • avatar
    MadHungarian

    Are there actually any old Chinese clunkers to cull? It hasn’t been that long since cars became widely available to the populace. If they’re trying to scrap the old Hongqi sedans and limos (the ones that look like a cross between a Zil, an Imperial and a Kaiser), please don’t do that, I’ll take one and I imagine lots of other collectors will!

  • avatar
    fincar1

    “I imagine lots of other collectors will”

    The kinds of collectors who enjoy having to fabricate parts, I’d suspect.

  • avatar

    First thing I wanted to do after having arrived in China was to secure one of those Red Flag cars to dríve down Changan Avenue with. Couldn’t find one, despite having good contacts with FAW, maker of said cars. They must be all gone. There isn’t much of a vintage car market in China, all cars are brand new. Don’t know what clunkers they are talking about. Maybe the first Santanas, anno 1985.

  • avatar
    Rastus

    This gives new meaning to China’s “Cash4Clunkers”…ie, they kill you on a bus and “harvest” your organs:

    http://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641236184

    http://www.liveleak.com/view?i=5f0_1175771241

    I’m glad you like it over there Bertel!!!

    Can you please get me a high-glossy brochure for one of those “Execution Buses”, please? I’m highly interested in how the unit “performs”.

    Thank you.

  • avatar
    MadHungarian

    fincar1 : The kinds of collectors who enjoy having to fabricate parts, I’d suspect.

    I live in the South. Every town has a guy who knows how to stuff a Chevy small block into anything.

  • avatar

    Rastus: Why, you want to help reduce the world’s second largest (behind Pakistan) death row population? Can’t do that. They are (mostly) Americans with rights.

  • avatar
    Rastus

    Who said anything official like “death row”. I’m talking about driving down an alley way, rounding up anyone within distance who looks somewhat healthy…and killing them on the spot.

    You know….CHINA!!

    (“Death Row”…give me a break. haha).

  • avatar
    gimmeamanual

    I wonder if this will increase the amount of clothes dryers?

    My apartment in China is Shanghai-pimp. Dryer, dishwasher, oven, and a big fridge; I can almost use my major appliances as pick-up lines.

  • avatar

    My apartment in China is Shanghai-pimp. Dryer, dishwasher, oven, and a big fridge; I can almost use my major appliances as pick-up lines.

    I know. Keeps the girl longer the next day. “Ah. A washer and a dryer! Mind if I use it?”

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