US to Suspend 'Cash for Clunkers' - Machine Underground -Tractor & Commercial Equipment Discussion Forum

**PaulChristenson** · 07-31-2009, 01:53 AM

US to Suspend 'Cash for Clunkers'

By KEN THOMAS
, AP

WASHINGTON (July 30) — The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials said Thursday.
The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Vyto Starinskas, Rutland Herald/AP
The government plans to suspend its "cash for clunkers" program, congressional officials said Thursday. In this July 27 photo, a Springfield, Vt., car dealer promotes the program by dumping a car in a trash bin.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly. Rae Tyson, a spokesman for the National Highway Traffic Safety Administration, which administers the program, declined comment.
Congress last month approved the Car Allowance Rebate System program, known as CARS, to boost auto sales and remove some inefficient cars and trucks from the roads. The program kicked off last Friday and was heavily publicized by car companies and auto dealers.
Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting the suspension.
A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.
"There's a significant backlog of 'cash for clunkers' deals that make us question how much funding is still available in the program," said Bailey Wood, a spokesman for the dealers association.
Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.
"This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going."
Brendan Daly, a spokesman for House Speaker Nancy Pelosi, D-Calif., said they would work with "the congressional sponsors and the administration to quickly review the results of the initiative."
General Motors Co. spokesman Greg Martin said Thursday the automaker hopes "there's a will and way to keep the CARS program going a little bit longer."

**Dougster** · 07-31-2009, 06:53 AM

Quote:

Originally Posted by PaulChristenson

US to Suspend 'Cash for Clunkers'

... or how to blow $1 Billion in less than a week on worthless, junky old cars.

Dougster™

**Mickey** · 07-31-2009, 12:18 PM

Well, I was wondering if Doug got in on this gold mine when I heard the news earlier today.

Uncle Sam blew $1 billion in less than a week. Ya really think he can manage to run your health care?

On Mon local tv station talking about this program and spoke about a couple cars that qualified. Mid-90's Ford Vicky and twin Merc model. Folks and wife's uncle has/had these cars and they would consistently get 28 mpg on the highway. These are the clunkers their scraping for new models that might get less mileage. Did see an advertisement yesterday for one of the new econo-box SUV's that according to the ad gets 24 mpg.

Yep, ole Uncle Sam has got his s#@t together, as usual.

**Dougster** · 07-31-2009, 02:49 PM

Quote:

Originally Posted by Mickey

Well, I was wondering if Doug got in on this gold mine when I heard the news earlier today.

Nope. The hideous old A.R.E. is too fuel efficient... so it doesn't qualify.

I still can't believe it. The government decides to give away a billion dollars in 4 days to rid the country of clunkers and the poor old Dougster™ doesn't get one red cent!

Quote:

Originally Posted by Mickey

Uncle Sam blew $1 billion in less than a week. Ya really think he can manage to run your health care?

On Mon local tv station talking about this program and spoke about a couple cars that qualified. Mid-90's Ford Vicky and twin Merc model. Folks and wife's uncle has/had these cars and they would consistently get 28 mpg on the highway. These are the clunkers their scraping for new models that might get less mileage. Did see an advertisement yesterday for one of the new econo-box SUV's that according to the ad gets 24 mpg.

Yep, ole Uncle Sam has got his s#@t together, as usual.

I've been watching TV too. The funny thing is that it is all rich old folks trading in their American-made Caddies and Buicks for new foreign-made cars (lots of Acuras, Toyotas and Hondas I noticed!). How the heck is that helping the US auto makers to recover from anything???

Anyway, damn few real "clunkers" in actual daily use qualified for this windfall... and none that us po' folk could ever have afforded to own and drive.

Once again, the rich get richer and the poor continue to drive hideous, brakeless old wrecks.

Dougster™

**Ducati996** · 07-31-2009, 03:45 PM

Quote:

Originally Posted by Dougster

I've been watching TV too. The funny thing is that it is all rich old folks trading in their American-made Caddies and Buicks for new foreign-made cars (lots of Acuras, Toyotas and Hondas I noticed!). How the heck is that helping the US auto makers to recover from anything???

Thats a damn good point and observation - this thing should have been applied to American cars mfg only....

**Mickey** · 07-31-2009, 05:40 PM

From hearing the Pres today talking about this, the program was intended to replace old gas guzzlers with more fuel efficient cars. As mentioned earlier,some older models with decent mileage figures are on the scrap-it list.

Cars taken in are to be scrapped and engines demolished.

**PaulChristenson** · 07-31-2009, 06:00 PM

Quote:

Originally Posted by Dougster

Nope. The hideous old A.R.E. is too fuel efficient... so it doesn't qualify.

I still can't believe it. The government decides to give away a billion dollars in 4 days to rid the country of clunkers and the poor old Dougster™ doesn't get one red cent!

I've been watching TV too. The funny thing is that it is all rich old folks trading in their American-made Caddies and Buicks for new foreign-made cars (lots of Acuras, Toyotas and Hondas I noticed!). How the heck is that helping the US auto makers to recover from anything???

Anyway, damn few real "clunkers" in actual daily use qualified for this windfall... and none that us po' folk could ever have afforded to own and drive.

Once again, the rich get richer and the poor continue to drive hideous, brakeless old wrecks.

Dougster™

When are you guys going to learn?

Only the rich, truly benefit from Government Bailouts...

Oh, before I forget...Thank you all...

Here is a late minute update...

House OKs $2B for 'Cash for Clunkers'
By KEN THOMAS
, AP
WASHINGTON (July 31) - The House of Representatives voted Friday to rush $2 billion into the popular but financially strapped "cash for clunkers" car purchase program, heeding calls from U.S. consumers who hope to keep taking advantage of the trade-in incentives.
The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.
The program was set up to boost U.S. auto sales and help struggling automakers through the worst sales slump in more than a quarter-century. Sales for the first half of the year were down 35 percent from the same period in 2008, and analysts are predicting only a modest recovery during the second half of the year.

President Barack Obama said he was encouraged by the House action to keep alive a program that had "succeeded well beyond our expectations."
Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.
House Majority Leader Steny Hoyer said the new money for the program would come from funds approved earlier in the year as part of an economic stimulus bill.
The leader of the House, Speaker Nancy Pelosi, a Democrat, alif., said the cars purchased under the program were much more fuel-efficient than the bill requires.
"Consumers have spoken with their wallets, and they've said they like this program," said Rep. David Obey, a Democrat.
Republicans argued that Democrats were trying to jam the legislation through. Some lawmakers also complained that many dealers were left to contend with a chaotic government-run program.
"The federal government can't process a simple rebate. I've got dealers who have submitted the paperwork three times and have gotten three rejections," said Rep. Pete Hoekstra, a Republican. "What is a dealer supposed to do?"
There had been a $1 billion budget for rebates for new car sales in the program that was officially launched last week and has been heavily publicized by automakers and dealers.
The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle. Congress last month approved the plan to boost auto sales and remove some inefficient cars and trucks from the roads.
The Senate was not scheduled to vote on Friday but lawmakers hoped to win approval for additional funding next week.
Sen. Carl Levin, a leading Democrat, said the administration assured lawmakers that "deals will be honored until otherwise noted by the White House." But he suggested that "people ought to get in and buy their cars."

**PaulChristenson** · 08-04-2009, 06:23 AM

A Clunker for Taxpayers?

AOL News

(Aug. 3) -- Some Republicans are taking aim at a federal program of the rarest kind -- one that's too popular.
The fate of "cash for clunkers" is on the line. It offers up to $4,500 to drivers who trade in gas-guzzlers for new, fuel-efficient vehicles. Overwhelming response gobbled up the program's initial $1 billion. Pressure is on the Senate to follow the House in approving another $2 billion.
The Hill reports John McCain will lead the no-more-cash-for-clunkers charge in the Senate. Joining him is Jim DeMint. The South Carolina Republican dismisses the program as Washington "stupidity" and says the government shouldn't be in the used car business.
Skip over this content Beyond Capitol Hill, bloggers such as Doctor Zero are blasting the program. In a post on HotAir.com, he calls it "the latest example of socialist government’s astonishing nearsightedness."
Writing in the Wall Street Journal, Edmunds.com CEO Jeremy Anwyl argues the incentives probably won't give auto sales much more of a boost.
And if cash for clunkers really is a good idea, Politics Daily's Bob Franken wonders, why stop there?
The clunker controversy took a bit of attention away from comments by top Obama administration officials who refused to rule out higher taxes on the middle class. Both issues are among the best moments from the Sunday talk shows -- as assembled by The Daily Beast.

**Ducati996** · 08-04-2009, 09:22 AM

Well at least two things happened which I didn't expect - Ford posts sales gains of 2% (significant nonetheless) and Honda posts a drop -

Since everybody was buying foreign cars - Toyota, Honda, Acura, Nissan would benefit the most. Turns out Honda didn't, which is puzzling and Ford gained (which is also puzzling and very surprising since their lineup isn't that strong yet IMHO).

**Mickey** · 08-04-2009, 10:43 AM

May have something to so with owner loyalty. Ford may have more models classified as clunkers than Honda, i.e. swaping for same brand.