US and China Look at Accelerated Retirement of Inefficient Cars

Tweet The Accelerated Retirement of Inefficient Vehicles Retirement Act of 2009 (ARIVA)—also called the “Cash for Clunkers” program—would reimburse drivers with a credit of up to $4,500 for scrapping vehicles with a when-new fuel economy rating of less than 18 mpg US as reported by the original manufacturer for purposes of CAFE compliance if they trade for a new or nearly new car that exceeds CAFE by 25%.

From March 1 until Dec. 31 the chinese government plans to spend 5 billion yuan on one-time subsidies to farmers opting to replace three-wheeled vehicles or outdated trucks with small, 1.3-liter engine or less vehicles

They will also increase subsidies for people to scrap their old cars and will straighten out and cancel regulations that restrict car purchase.

The chinese government also earmarked 10 billion yuan for technological innovation and the development of alternative fuel cars and components over the next three years.