diff --git a/cluster/gce/config-default.sh b/cluster/gce/config-default.sh
index 3a043612b5a..9a8653da803 100755
--- a/cluster/gce/config-default.sh
+++ b/cluster/gce/config-default.sh
@@ -118,7 +118,7 @@ ENABLE_NODE_AUTOSCALER="${KUBE_ENABLE_NODE_AUTOSCALER:-false}"
 if [[ "${ENABLE_NODE_AUTOSCALER}" == "true" ]]; then
   AUTOSCALER_MIN_NODES="${KUBE_AUTOSCALER_MIN_NODES:-}"
   AUTOSCALER_MAX_NODES="${KUBE_AUTOSCALER_MAX_NODES:-}"
-  AUTOSCALER_ENABLE_SCALE_DOWN="${KUBE_AUTOSCALER_ENABLE_SCALE_DOWN:-false}"
+  AUTOSCALER_ENABLE_SCALE_DOWN="${KUBE_AUTOSCALER_ENABLE_SCALE_DOWN:-true}"
 fi
 
 # Admission Controllers to invoke prior to persisting objects in cluster
diff --git a/cluster/gce/util.sh b/cluster/gce/util.sh
index d8d3972515c..d42b0bbbd8a 100755
--- a/cluster/gce/util.sh
+++ b/cluster/gce/util.sh
@@ -840,7 +840,7 @@ function create-cluster-autoscaler-mig-config() {
     AUTOSCALER_MIG_CONFIG="${AUTOSCALER_MIG_CONFIG} --nodes=${this_mig_min}:${this_mig_max}:${mig_url}"
   done
 
-  AUTOSCALER_MIG_CONFIG="${AUTOSCALER_MIG_CONFIG} --experimental-scale-down-enabled=${AUTOSCALER_ENABLE_SCALE_DOWN}"
+  AUTOSCALER_MIG_CONFIG="${AUTOSCALER_MIG_CONFIG} --scale-down-enabled=${AUTOSCALER_ENABLE_SCALE_DOWN}"
 }
 
 # Assumes:
diff --git a/cluster/saltbase/salt/cluster-autoscaler/cluster-autoscaler.manifest b/cluster/saltbase/salt/cluster-autoscaler/cluster-autoscaler.manifest
index 010a3dcf3f0..56c22d07a45 100644
--- a/cluster/saltbase/salt/cluster-autoscaler/cluster-autoscaler.manifest
+++ b/cluster/saltbase/salt/cluster-autoscaler/cluster-autoscaler.manifest
@@ -25,7 +25,7 @@
         "containers": [
             {
                 "name": "cluster-autoscaler",
-                "image": "gcr.io/google_containers/cluster-autoscaler:v0.1.1",
+                "image": "gcr.io/google_containers/cluster-autoscaler:v0.1.2",
                 "command": [
                     "/bin/sh",
                     "-c",