The Russian government will continue the national 'cash for clunkers' program in 2011, investing another 14 billion rubles $466 million), Prime Minister Vladimir Putin said on Tuesday.
"Preferential loans for buying cars have proven beneficial, as has the program for recycling used cars. That is why we have decided to continue the recycling program next year," Putin told a United Russia party meeting.
It is expected that over 200,000 cars will be sold during the second phase of the recycling program.
The first part took place in March-June 2010, and anyone could turn in a car 10 years or older and receive a coupon for a 50,000 ruble discount for the purchase of a Russian-made car.
"Overall, we are looking at different modernization and development possibilities for the automotive industry and are looking for individual solutions and an effective business proposal for each enterprise. We are talking to potential investors, and that has its results as well," Putin said.
NIZHNY NOVGOROD, September 14 (RIA Novosti)
