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Old 25th March 2009, 23:40   #16
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@diffsoft: Good points! What I was saying was that automakers may be relieved that the government is helping them out. But as you rightly said, the real solution is to adjust the scale of operations to meet the changing conditions. In a changing scenario, the successful would be those whose cost structure is less fixed and more variable/semi-variable.

GM (USA) problem was (is) that it could not (or did not) adjust its scale to the point where the real demand was, for their given set of offerings.

The government, of course, is more worried about the multiplier effect and therefore tries to protect individual pieces of the economy from failing.
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Old 26th March 2009, 09:33   #17
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@vipul_singh: I tend to agree that the man in ICU needs to be saved first and then we need to decide who pays for it. The multiplier effect needs to be controlled else we may have a vicious cycle of lower demand, lower production, lower wages and hence further lower demand.

The challenge subsequently is for the Govt to get out of it subsequently or else ...... the definition of the ICU will be changed, everyone with a cold and cough will want to be treated in ICU etc.

Cheers,

Last edited by diffsoft : 26th March 2009 at 09:41. Reason: Better communication
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Old 1st April 2009, 09:00   #18
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Default MALAYSIA does it too !!

Malaysia Launches Scrappage Subsidy to Aid Struggling Auto Industry

By Alan Harman
WardsAuto.com, Mar 16, 2009 1:42 PM



The Malaysian government introduces a vehicle-scrappage subsidy as part of a 2-year, 60 billion ringgit ($16.4 billion) economic stimulus package.

The government also is giving MR200 million ($54.2 million) to the Automotive Development Fund to support the auto industry and to establish the Automotive Institute of Malaysia.

Finance Minister Najib Razak says the government will finance 50% of the scrappage scheme, which pays owners of vehicles at least 10 years old MR5,000 ($1,354) to turn them in and purchase new cars from national auto makers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua). The auto makers will finance the other 50%.

To qualify for the scheme, vehicles traded in must be registered with the Road Transport Dept. and be operational. Once surrendered, the cars cannot be returned.

The automotive sector is among the major industries with potential for further development,” Najib says in a transcript of his speech to the parliament. “In the current economic situation, the sales performance in the automotive industry has not been encouraging, and many companies in the automotive supply chain are facing difficulties.

“These companies have to be assisted to enable them to continue operations, despite facing low demand and rising costs.”

Proton Chairman Nadzmi Salleh says in a statement the government’s proposal is timely and will positively affect the industry. “As an industry, we need every bit of help from the government during this difficult period to ensure survival, as close to 200,000 people are directly and indirectly linked to the industry nationwide.”

Proton Managing Director Zainal Tahir says he hopes financial institutions will play a role in ensuring the effectiveness and successful implementation of the initiative. “We realized such a scheme will benefit everyone and is an important tool in the automotive ecosystem, (helping) the industry to dispose old cars more efficiently and responsibly while protecting the environment from dangerous and hazardous waste,” he says in a statement.

Perodua Managing Director Hafiz Bakar tells The Business Times he is hoping vehicle sales will rise as they did in Germany, where a similar scheme has been enacted. “There are some 4.8 million cars at least 10 years old on the road (in Malaysia) at the moment,” he says. Malaysian Automotive Assn. President Aishah Ahmad tells the Malaysia Star newspaper she is disappointed the scheme is only applicable to Proton and Perodua. “There are other car brands that have been around a lot longer in Malaysia and it is disappointing that only two will benefit,” she says. The centerpiece of the stimulus package is a plan to get credit flowing again by setting up a Financial Guarantee Institution with an initial paid-up capital of MR1 billion ($272 million), which subsequently will be raised to MR2 billion ($541 million). It is expected that bonds totaling MR15 billion ($4.08 billion) will be raised.

“Under current market conditions, even companies with investment-grade ratings are unable to access the capital market, particularly the bond market,’’ Najib tells parliament. The government also will establish an Industry Restructuring Guarantee Fund Scheme with MR5 billion ($1.4 billion) to increase productivity and value-added activities. Najib says the stimulus package is unprecedented in the country’s economic history, but necessary given the worsening global economy

"Without these efforts, the economy faces the prospect of a deep recession,” Najib says. “Taking into account these measures, (gross domestic product) growth is expected to be in the range of -1% to 1% for 2009.”

Malaysia Launches Scrappage Subsidy to Aid Struggling Auto Industry
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Old 21st May 2009, 19:37   #19
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Default The Car Scrappage Scheme Goes Live in the UK!

Source AutoExpress UK
Car Scrappage Scheme in the UK w.e.f. 18/05/09


THE scrappage scheme goes live today! And while the cash-for-scrap initiative is sure to stir up some showroom action, the small print inevitably means there’s winners and losers.

Despite the Government’s original claim that makers would not be able to exclude certain cars from the scheme, cars with waiting lists of four months or more are in fact exempt. Check out this week’s magazine – on sale 20 May – for a full run-down of the models effect by this Government u-turn. A finalised list of the conditions is below:

1. The scrapped vehicle must have been first registered in the UK before 31 August 1999.
2. The scrapped vehicle must be a passenger car or van weighing less than 3.5 tonnes.
3. The scrapped vehicle must be owned by the registered keeper for at least one year.
4. The scrapped vehicle must have a current MOT test certificate, or one that’s no more than 14 days past its expiry date at the time of placing the order.
5. The new car must be delivered by the manufacturer to the dealership within four months of placing the order.

Despite the stumbling blocks laid out above initial reactions from dealers have been positive and in favour of the scheme. Darren Robins, sales manager, Marshall Ford, Bury St Edmunds, said: “This scheme’s made a huge difference, the level of enquiries is right up. We’ve sold a couple of larger vehicles but it’s mostly the Fiesta and Ka that buyers are interested in. The vast majority are paying cash, not seeking credit.”
The only time the dealer will turn you down is if the car you want will take four or more months to deliver. In reality, this is unlikely to happen unless the manufacturer has run out of stock or it’s a low-volume performance car.
So now’s the time to get down to the showroom, before the £300m the government has earmarked for this runs out! But this time you visit, the salesman won’t be making laughable offers on your trade-in. It’s worth £2,000 and no arguing, no matter how dirty it is!
Our team will be updating this guide with all the news on the very latest offers available.
So if you’re in the market for a new car and ready to get rid of the junk on your driveway, there’s never been a better time to buy.
There are offers from individual manufacturers for scrappage and new buys.

Last edited by anjan_c2007 : 21st May 2009 at 19:42.
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Old 22nd May 2009, 11:59   #20
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Quote:
Originally Posted by anjan_c2007 View Post
Despite the Government’s original claim that makers would not be able to exclude certain cars from the scheme, cars with waiting lists of four months or more are in fact exempt.
Quote:
The new car must be delivered by the manufacturer to the dealership within four months of placing the order.
Strange, what if the most fuel efficient cars are the ones with the longest wait list? But then, this stimulus is for the ones from the car industry who are in dire need of sales!

Quote:
but it’s mostly the Fiesta and Ka that buyers are interested in.
Hahahaha, just like in Germany.

P.S. : In accordance with our rules, please provide the source URL of this information.
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Old 22nd May 2009, 12:08   #21
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In other news,
Two Nissan GT-Rs bought on scrappage scheme - Auto Trader UK - News and Reviews Hub
Quote:
Two Nissan GT-R supercars have been purchased under the new scrappage scheme.
The buyers pounced within five hours of the initiative starting this morning.
The scrappage scheme was intended to boost new car sales while encouraging people to buy more fuel-efficient cars.
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Old 22nd May 2009, 14:17   #22
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This is an interesting scheme, maybe our commerce/finance/environment ministers should consider something like this scheme for the Taxis in our country instead of fighting courts and unions.
My business associates in Germany told me that the Jaguar XF is being offered at a 30% off on list price! He is buying one, saying its a very good car, with no nagging and common Jaguar problems. Presently using a Phaeton. He will be giving in one of the companies service cars[passat 1993 done 400,000kms] in the government scheme and get a further deduction for the traded in car.
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Old 22nd May 2009, 14:27   #23
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Quote:
Originally Posted by condor View Post
So what are they doing with all those 9+ yr old Merc's, BMW's etc ?
People from Latvia, Estonia etc come and buy them. There's a big market for the old cars in these countries.
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Old 1st August 2009, 18:41   #24
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those of you who love cars are warned that it is gruesome. I felt sad looking at the car die, gasping and crying towards the end :(

Essentially the process to kill the engine of a car under the cash for clunkers. you drain the engine oil, and add sodium silicate (essentially liquid glass)

you then run the engine until it self destructs.

Why
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Old 1st August 2009, 19:15   #25
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But why???

This is just sadism man. I felt really bad for that car.

Edit: Foud this info when searched for why this is done

Sodium Silicate Is The Cash for Clunkers Executioner

Last edited by shreyasma : 1st August 2009 at 19:21.
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Old 1st August 2009, 19:27   #26
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This is the height of stupidity. I think the car is a 2003 Volvo S80. According to the Cash for Clunkers program in the US you can trade in any driveable car upto 25 years old that gives a mileage less than 18 mpg and get a rebate of upto $4500 on a new vehicle.

According to the rules the car being traded in must first be disabled, thats whats being done in the video.

I think the owner of this car would get more than $4500 if he just sold the vehicle or did a normal trade in.

I the funny thing is that according to the rules you can trade in a car which gives 17.5 mpg for a SUV that gives 18 mpg and get a $4500 discount!

Brilliant planning by the Obama administration to save the environment! Did they even take into account the amount of pollution that factories make to build a new car? and the costs associated with recycling or disposing of a old car?

or are they just too busy saving GM?
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Old 1st August 2009, 19:39   #27
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Damn! thats seriously disturbing!! :(

btw they do that to the trade in vehicles(the ones given in + cash to buy new vehicles??)
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Old 1st August 2009, 19:50   #28
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well i think this is good for some cases. definately not in this case. this car seems to be in perfect shape. what will they do with the shell??
this sodium silicate must be used in countries like india where buses from the 2nd WW still ply on the road. once this is done purposely, environment pollusion will decrease.
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Old 1st August 2009, 20:49   #29
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Bad, very bad. I dont know how this rebate stuff is helpful to economy or environment. Its certainly not for environment. Manufacturing a car, transporting it from the place where it was made, all use energy.
This is nothing but sadism/sadistic approach and selfishness at its best.
Sorry to say ( I know its not good part and OT ), but I think the country where this video is made has excess money that too it came with relatively less work.

They are just too busy making miscalculations. Even selling off the engine would be good. Anybody else can use it. IMHO, US has a lot of people who actually do modification stuff.
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Old 1st August 2009, 21:48   #30
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my car connects to me and i connect with her!
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