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Mar-19-2009Cash-for-Clunkers Could Drive New Sales(topic overview)
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An Ohio congresswoman has submitted a new cash-for-clunkers program that would give consumers up to $5000 for their clunkers to spend toward the purchase of a more fuel efficient model. House Democrat Betty Sutton calls her bill the Consumer Assistance to Recycle and Save Act. "The CARS Act will achieve many goals: consumers will finally get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of CO2; and the auto industry will get a jumpstart to spur sales," she said. "This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries, upon which millions of American families depend for unemployment." The CARS Act would allow consumers to trade in their old vehicles for up to $5000 toward the purchase of a new vehicle. Trade-in vehicles would have to be at least eight years old, and the new vehicles being purchased must achieve better fuel economy than the vehicles they replace and cost less than $35,000. [1] METRO DETROIT -- Hoping to help consumers, the environment and the economy, Republican U.S. Rep. Candice Miller has teamed up with two congressional Democrats to introduce an act designed to get more fuel-efficient vehicles on the roads. The Consumer Assistance to Recycle and Save Cars (CARS) Act was introduced March 18 by Miller, R-Harrison Township, and Rep. Betty Sutton, D-Ohio, and co-sponsored by Rep. Bruce Braley, D-Iowa, to give consumers cash vouchers for the purchase of new vehicles when they turn in an automobile eight years old or older. "This will stimulate auto sales, which is clearly the way forward," Miller said in a conference call with the other representatives and members of the media.[2]
The voucher can also be used for mass transit fares instead of a new vehicle if the customer wishes. "Germany actually had a similar incentive to do this, and it actually increased sales in February by more than 20 percent," Miller said. She said there are countless American-made vehicles that are very fuel-efficient, including the Ford Fusion Hybrid, at 40 miles per gallon; the Ford Escape Hybrid; and conventional gasoline vehicles, such as the Chevrolet Sebring built in Sterling Heights, that get more than 30 miles to the gallon. "This bill, I believe, will provide a huge economic stimulus and boost the auto industry," Miller said. "This bill represents a rejection of some of the arguments that we've heard in the past where it's been sort of understood that you can't necessarily look out for jobs and improve our environment at the same time," Sutton said. "This helps consumers and preserves jobs and the environment." Miller said if they could pull just 10 percent of the "older, big block V-8" engines off the road, there is the potential to save more than a billion gallons of gas a year, reducing carbon emissions and America's dependence on foreign oil.[2] GM chairman and CEO Rick Wagoner told reporters today in Washington that a bill to offer cash for older cars could benefit the industry. "These kind of programs can have a huge impact," Wagoner said, adding that it could boost consumer confidence. "It would be very helpful to have something like that here in the United States." He pointed to a roughly 15 percent increase in auto sales in Germany last month over the same period a year ago after they introduced a similar program. Consumers could also turn in their vehicles in exchange for a mass transit voucher. "By providing a transit voucher option, this bill will also encourage the use of mass transit, which will similarly benefit our economy and environment," Sutton said.[3]
The bill, introduced by Representative Betty Sutton (D-Ohio) and co-sponsored by Representatives Bruce Braley (D-IA), John Dingell (D-MI), and Candice Miller (R-MI), would provide tax incentives of between $3,000 and $5,000, or mass transit voucher, to consumers who trade in vehicles at least eight years old for ones that get better fuel economy. The size and availability of the incentive would depend on its fuel economy and where it was built. (There is also a provision for $7,500 for a vehicle assembled in the United States and achieves 100 mpg'''essentially requiring an electrified powertrain.)[4] A bill introduced on Tuesday by Representative Betty Sutton of Ohio would provide consumers with a $3,000 to $5,000 incentive to trade in less fuel-efficient vehicles that are at least 8 years old for new ones that achieve better mileage and emit lower emissions.[5]
The bill, introduced Tuesday by Rep. Betty Sutton, D-Ohio, would provide on- the-spot vouchers between $3,000 to $7,500 to consumers who trade in older vehicles for new, more fuel-efficient cars and trucks.[6]
Want $3,000 - $5,000 for your old clunker?'' I'''ll bet you do. It might become a reality if one Ohio congresswoman gets her way. Rep. Betty Sutton, D-Ohio, introduced a cash-for-clunkers plan designed to spur car sales by giving buyers $3,000 - $5,000 when they turn in old cars for something new and more environmentally friendly. "This is a very comprehensive bill with multiple beneficial effects that I think will make it palatable to enough of the Congress that we can enact it," Sutton said Tuesday. "It not only assists consumers who need a lot of help in this economic downturn, but it will stimulate our economy, reduces emissions, and reduces our dependency on foreign oil."[7] The latest round comes from a new proposal, the Consumer Assistance to Recycle and Save bill--or CARS Act --introduced by Representative Betty Sutton (D-Ohio). Her bill marks the third attempt to get Congress to approve such a program. It's a simple idea: Offer money to any car owner who replaces an old, high-polluting vehicle with a new, low-emission / high-mileage car. It removes a lot of emissions quickly from "gross polluters" (cars with primitive emissions systems built before the mid-1990s), and it's also a way to boost new-car sales. In Germany, new-car sales rose 21 percent under such a program, and now Great Britain and China are considering their own programs.[8] Rep. Betty Sutton (D-Ohio) proposes giving consumers vouchers in exchange for turning in vehicles at least eight years old, dubbed the Consumer Assistance to Recycle and Save bill, or CARS Act." The idea, however, is gaining traction because of its success overseas. USA Today notes, "European car sales are benefiting from such efforts. A recent analysis by CSM Worldwide showed vehicle sales in the several nations with such plans will be 400,000 more this year than they'd be without the bonus."[9]
Trade in a vehicle more than eight years old and you could get $3,000 in mass transit travel vouchers. "This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries, upon which millions of American families depend upon for employment,''' said Sutton.[10] "The CARS Act will achieve many goals: consumers will finally get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of CO2; and the auto industry will get a jumpstart to spur sales," Sutton said. "This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries, upon which millions of American families depend for employment."[3]
Manufacturers are already offering numerous financing deals and other incentives to lure buyers. "This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil and help our domestic auto and related industries," Sutton, a Democrat, said in a statement.[5]
By providing incentives to purchase a new vehicle, the legislation would help reduce consumer costs, jumpstart the economy and help support millions of good jobs in every state across the nation," Ford said in a statement.[3] Sutton's plan also allows consumers to trade vehicles for a mass transit voucher instead of a new vehicle voucher. "By providing a transit voucher option, this bill will also encourage the use of mass transit, which will similarly benefit our economy and environment," she said.[1] The size of the vouchers would vary, depending on the fuel economy of the car being purchased. The older vehicles, required to have been built at least eight years ago, would be scrapped and their parts recycled, while the new vehicles would have to meet a certain fuel economy standard - 27 mpg on highways for cars, 24 mpg for light trucks, Sutton said.[6]
A bill introduced in the House today would provide consumers with between $3,000 and $5,000 in incentives to scrap vehicles at least eight years old and buy fuel efficient cars and trucks.[10] Sutton's bill proposes giving $3,000 to consumers who trade in cars more than 8 years old and buy a new car that gets more than 27 miles per gallon or a truck getting more than 24 miles to the gallon.'' Consumers would get more'' money if they bought cars getting more than 30 MPG. Ads by Yahoo![7]
The bill would award higher vouchers for vehicles assembled in North America -- up to $5,000 -- versus up to $4,000 vouchers for vehicles assembled outside North America, and would not apply at all to vehicles made outside North America. The proposal was endorsed Tuesday by Detroit's Big Three automakers and the United Auto Workers. To qualify, consumers would have to buy a vehicle more fuel-efficient than their current car or truck.[11] Vehicles assembled in North America would be favored, qualifying for the full $5000 voucher; other vehicles would qualify for $4000. If the bill requires the vehicles to be assembled in North America - not the U.S. in particular - virtually all of the domestics' vehicles will qualify for the $5000 incentive, including Ford's new Fusion/Milan and their hybrid variants (2010 Mercury Milan hybrid pictured).[1] Depending on the type of new car you buy, you would be eligible for thousands of dollars. Buyers of vehicle assembled in the U.S. could get a voucher worth up to $5,000 compared to a check totaling up to $4,000 for those built in North America, outside the U.S. If you bought a car made outside North America, you could not collect a voucher.[12]
The vehicles must be at least eight years old, and the car being purchased must be a new vehicle that has been built in North America and costs less than $35,000, reports The Detroit News.[13] Sutton's CARS Act is roughly similar to earlier'proposals. It offers a $5,000 voucher to buyers of cars assembled in North America ($4,000 otherwise) who trade in a car at least 8 years old.[8]
A good way to jump-start the economy would be a $3,000 to $5,000 incentive to exchange gas guzzlers for more fuel-efficient cars, trucks or get a voucher for mass transit, said U.S. Rep. Betty Sutton, D-Copley Township.[14] There are roughly 249 million vehicles on the road today, according to R.L. Polk. The vouchers cover vehicles made in Mexico and Canada, but favor those made in the U.S. A $4,000 voucher is available for a car made in the U.S. meeting the fuel economy standard.[10] The fuel economy targets to receive a $4,000 voucher would be lower for cars built in the U.S. than in Canada or Mexico: 27 mpg vs. 30 mpg.[4] One reaching 30 mpg gets a voucher of $4,000. Trucks and SUVs meeting the fuel economy standard built in the U.S. get a $4,000 voucher, while those made in Canada and Mexico get $3,000.[10]
A business replacing a work truck with one that gets greater fuel economy of any kind gets a $5,000 voucher.[10]
WASHINGTON -- A wide-ranging program that would give consumers turning in old clunkers cash vouchers worth up to $5,000 to buy new, more fuel-efficient vehicles was introduced Tuesday in Congress. [11] The bill proposes giving consumers vouchers to buy new, more fuel-efficient vehicles in exchange for turning in vehicles at least eight years old.[11]
The bill'''s introduction comes on the heels of a similar measure that worked in Germany. After implementation of its consumer incentive program, sales of new vehicles in Germany increased 21 percent in February 2009, versus the same month a year ago, while other European countries showed declines.[10] Sutton represents the 13th Congressional District, which includes Lorain County. A similar incentive program worked in Germany, where sales of new vehicles increased 21 percent in February 2009 compared with the same month a year ago, Sutton said. Other sponsors are Bruce Braley, D-Iowa, and Candice Miller, R-Mich.[14]
If implemented, the program would attempt to stimulate sales of new cars by offering vehicle owners a cash incentive for trading in old cars for newer fuel-efficient ones. The latest revisions to the program would offer between $3,000 and $7,500 to owners who trade in their vehicles.[13] Should Toyota really care though? The Camry and Corolla are both eligible with this new package, and last time I checked these were the 2 of the best selling vehicles ever produced. I'd imagine more people would choose these cars over just about any GM, Ford, or Chrysler vehicle in their respective classes, even without a $3k-$7.5k government incentive for trade-in. Besides, the Prius hasn't undersold it's sales quota since it's been introduced, this bill probably won't change that.[13] It'''s my understanding that Betty Sutton herself just bought a brand new Toyota. Now they are made in America, but not in Ohio as Ford and General Motor cars are. Now what kind of example does that show folks who know her and see her driving that new vehicle around? Buy a Toyota it must be the best, Betty Sutton did. Oh! Ya Betty Sutton claims she supports the troops, only when it soots'''s Betty Sutton'''s campaign reelection. I wonder who will throw her another fund raiser in New York next time like Hilary Clinton did last year.[14] With my current car getting about 22 mpg, almost anything would be better. Yes, I would 'buy a Toyota or Honda'- why? My family has had both Hondas and "American-made" vehicles (GM, Ford), and we have simply had a better experience with Honda- not to mention Honda Civics, which I would choose, are made in East Liberty, Ohio. It's a nice bonus to know that a car I purchase (since I will eventually buy a Civic, whether it's with this incentive, or later) was made in Ohio. I'd much rather buy a Civic than a Ford Focus (only 1 of 8 plants where they are made is in the U.S.), or a Chevy Cobalt (which, yes, is made in Lordstown, OH- but it's also about a thousand dollars more- for a car I hated when I drove the one relatives have). When you look at the quality of what the auto manufacturers are offering, where their vehicles are made, their estimated fuel efficiency, and price, it is a wonder anyone can 'fault' someone for buying a "foreign" car when it is made in the U.S., gets similar- if not better- fuel efficiency, and is oftentimes less expensive than the "American-made" Ford, GM, and Chrysler products- most of whose plants aren't in the U.S. anymore, and their repair record isn't as good as the others'.[14]
The new vehicle would have to achieve at least 27mpg during highway driving, and the higher the mileage ratings the more money the owner would get. Similar plans have been in place in Germany for some time now, and citing these as the chief cause of spikes in new car sales in the German market, domestic carmakers such as Ford and GM are convinced that a similar initiative in the U.S. could have good results.[13] Incentives would be limited to cars that cost less than $35,000, and it would require that the old trade-in vehicle be scrapped, not resold. A similar measure in Germany has spurred automotive sales, with the country showing a 21-percent rise in February, compared against the same month in 2008, according to Sutton.[4] Assessing the cost of the bill at a time when deficits and the costs of bailouts are running high could be a problem. According to auto industry lobbyists and Hill staffers, the idea of stimulating sales through incentives for greener vehicles should have support on both sides of the aisle. '''This has legs,''' says one Republican Senate staffer. '''It will be popular with voters and a lot of people on both sides.''' All automakers would benefit, but Asian-owned companies would actually benefit disproportionately to those in Detroit.[10] Bloomberg News called the bill a "cash for clunkers" proposal and quoted a top UAW spokesman who said the union supports the Sutton fleet-modernization bill. "It would help to stimulate auto sales, and thus would help support jobs for American workers in the auto industry," Alan Reuther, legislative director of the UAW, said in a statement to Bloomberg.[14]
The mismanaged American auto industry that is ALREADY receiving taxpayer money. It is a FACT that the cheaper, foreign auto makers that sell vehicles in Germany GAINED 15 percent of the sales over their German car building counterparts, like Toyota, Mazda and Hyundaisounds like American builders to me.[14]
The best performing vehicles would receive the highest benefit. U.S. auto sales have plunged 40 percent this year due to recession and business and consumer credit woes, contributing heavily to financial distress at General Motors Corp ( GM.N ) and Chrysler LLC CBS.UL and less dire but still serious financial problems at Ford Motor Co ( F.N ).[5] Ford has been pushing for a similar plan in Germany, which has increased overall auto sales in the country by about 15 percent compared to the same time period last year, to be extended to counteract the recession.[1]
Proponents of the bill point to a similar program in Germany that is credited with helping to push auto sales 21 percent higher in February.[5] We live with it every day. (But) even though states like Michigan or Ohio might feel the most, the decline of auto sales are impacting every state in the nation." Its sponsors are hoping to fast track the legislation. They're not sure where the funding will come from, but said money from the Troubled Asset Relief Program (TARP) might be a way to move it forward. "All three of us will be keeping our ears and eyes open for opportunities that will get this bill introduced, a full debate and, hopefully, enacted as soon as possible," Braley said.[2] Just a couple of weeks ago the original Cash for Clunkers bill was rejected by the Senate because of research that showed the program wouldn't have made much impact on auto sales.[13]
The bill aims to boost car sales in the midst of the recession, help struggling consumers buy new cars and cut pollution by taking some of the oldest, dirtiest cars off the road.[11]
"Our goal is to develop legislation that jump-starts the American economy," Sutton said. "It's designed to help make cars more affordable for consumers. It's also designed to be fair and equitable across the major manufacturers making cars across North America."[2] On the flipside, foreign firms are crying foul at the bill, which is only applicable to cars made in North America. Toyota pointed out that its Prius hybrid vehicle, one of the most fuel efficient cars on the market today, is ineligible for the program because it is manufactured outside North America.[13]
The bill would offer a $7,500 cash voucher starting in 2010 for plug-in electric hybrids that get 100 mpg or more. Car owners also could turn in their vehicles in exchange for a mass transit voucher worth up to $3,000.[11] Customers shopping for new vehicles would get cash vouchers from $3,000 to $7,500, depending on the new vehicle's level of fuel efficiency.[2]
Texas unveiled a $45 million annual program in 2008, dubbed "Drive a Clean Machine," which offers up to $3,500 toward a new vehicle for lower-income consumers in Austin, Houston and Dallas-Fort Worth who own vehicles at least 10 years old.[11] The program replaced 16,000 vehicles last year. Canada launched a national program on Jan. 1 that aims to get 50,000 vehicles, or 1 percent of its older vehicles, off the roads. The $92 million, three-year program will offer Canadians $300 cash or a discount on a bicycle or a public transit pass in exchange for their older vehicle.[11] In six months, the program retired more than 11,000 vehicles. California, home to 33 million cars and trucks, or 13.5 percent of the nation's fleet, runs a similar program that spends $50 million a year to give lower-income residents up to $1,500 to retire vehicles that fail emissions tests or $500 to have them repaired. It has no income requirements.[11]
February sales were running at an annualized rate of 9.12 million, the lowest level since 1981. As consumers hold on to their cars longer, the media age of cars on the road climbed to 9.4 years in 2008, and the media age of trucks rose to 7.4 years, both records.[10]
"We're improving our environment, jump-starting car sales, stimulating the economy and reducing the dependence on foreign oil," Sutton said, adding that stimulating vehicle sales also provides another benefit. "We're securing the jobs in the automotive and related industries that support our families," she said.[14] U.S. car sales have fallen more than 40 percent in the past year and action is needed, said Sutton, who has been working with the Big Three U.S. carmakers on the proposal.[14] WASHINGTON (Reuters) - Automakers and their allies in Congress are taking another shot at legislation to stimulate U.S. auto sales by taking older, fuel-thirsty cars off the road.[5] Sutton said the intent is to stimulate slumping auto sales while also reducing car pollution.[6]
Sutton's bill - strongly pushed by Ford Motor Co. (F) and backed by the United Auto Workers - would preclude vouchers from being used on some of the most fuel-efficient cars and trucks, including the Toyota (TM) Prius.[6] Barbara Nocera, Mazda's director of government and public affairs, said the bill violates WTO and Nafta agreements. "American auto dealers who sell imported international brands, their American employees, and the American communities that benefit from their taxes would be unfairly disadvantaged under the Sutton bill," Nocera said in a statement. A Toyota spokeswoman said Toyota officials share those free-trade concerns. "We'd prefer a fleet-modernization program that fairly treats all manufacturers," the Alliance of Automobile Manufacturers, which represents both U.S. and foreign auto makers, said in a statement.[6] "I do not think there should be an expectation of American taxpayers (that) we have to use our tax dollars to incent Americans to buy foreign automobiles," said Rep. Candice Miller, R-Mich., a co-sponsor of the Sutton bill. At least two foreign-based auto makers, Toyota Motor Corp. and Mazda Motor Corp. (7261.TO), have raised concerns about the bill.[6]
Ohio Representative Betty Sutton (Democrat, and incidentally one of The Hill's "Most Beautiful People of 2008" ) is introducing a bill to give American car buyers some relief on the lots.[15] The bill, introduced by Rep. Betty Sutton (D-Ohio), would assist consumers in buying cars that get at least 27 mpg on highway, and trucks/SUVs that get at least 24 mpg on highway.[10]
The bill could help speed the improvement of the fuel efficiency of the auto fleet. Automakers must increase the efficiency of their vehicles by at least 40 percent to a fleet-wide 35 mpg by 2020. [11] Starting in 2010, if you buy a plug-in electric hybrid that gets 100 mpg or more, you could collect a $7,500 voucher. I think these programs are a win/win/win for buyers, auto makers, and the environment. Buyers will get a sizable voucher to upgrade their vehicle into a ride that gets better mileage and provides better performance.[12] Giving $5,000 vouchers to folks buying cars assembled in America. (Cars assembled outside the U.S. would earn a $4,000 voucher.) Giving an extra-special $7,500 voucher toward the purchase of any vehicle that's both made in America and gets 100mpg.[15] The vehicles would also have to have a price-tag of $35,000 or less. It would also give higher-value vouchers for vehicles assembled in North America -- up to $5,000 -- versus up to $4,000 vouchers for vehicles assembled outside North America.[3] If the bill passes, foreign-made vehicles will receive a voucher of $4,000, while North American-made vehicles will be eligible for the entire $5,000."[9]
The new vehicle must cost less than $35,000 and be manufactured in North America.[2] If you are driving a vehicle at least eight years old, you would have to trade that in and buy a vehicle that is more fuel efficient and costs $35,000 or less.[12] Trade-ins must be at least eight years old. Purchased vehicles must be new, and they must be more fuel-efficient than the vehicle being traded in.[15]
Sutton introduced the Consumer Assistance to Recycle and Save (CARS) Act on Tuesday to give consumers purchase incentives for turning in vehicles that are eight years or older in exchange for more efficient vehicles assembled in the United States.[14] An earlier version of a so-called "cash for clunkers" incentives ran into union opposition that it could end up favoring imports. To avoid that problem, this new measure awards an extra $1,000 for vehicles assembled in the United States.[11]
Incentives for some of the vehicles that qualify can be as high as $3,500 just from the automakers. Non business buyers of full-sized pickups and sport utility vehicles wouldn'''t see much benefit beyond current incentives because those vehicles don'''t meet the fuel economy aspect of the deal.[10] Based on 2008 fuel economy figures analyzed by Automotive News, 48% of Chrysler'''s passenger cars would qualify for incentives, while 63% of Ford'''s would qualify and 49% of GM'''s.[10]
Congress is once again kicking around the idea of giving people an incentive to trade in their old car or truck for a newer, more fuel efficient model. It's an idea that has sparked demand for new cars in other countries around the world.[12] In the legislation, new car purchases that qualify for the incentive must achieve a minimum of 27 miles per gallon on highways, while new trucks must achieve a minimum of 24 mpg for highway driving.[14] New cars that qualify for the incentive must get a minimum of 27 miles per gallon on the highway while pickups and sport utilities must archive at least 24 mpg.[5]
Summary: Several U.S. lawmakers have again raised the idea of providing federal vouchers to consumers to replace older vehicles with new, fuel-efficient cars, hoping that the recent success of a programme in Germany would give the proposal new momentum. [16] The scrapped vehicle has to be replaced with one that's more fuel-efficient: a truck that gets at least 24 mpg on the highway, or a car that gets 27 mpg.[8]
Let's review. These are voluntary programs. You can keep driving your high-polluting vehicle as long as you like, assuming it passes annual inspections in states that have them. Opponents often suggest'it's a better use of money to repair old cars than to junk them. That depends what your goal is.[8] Sutton noted that 60 percent of vehicles in the United States are old enough to qualify.[11]
The new vehicle must be more fuel-efficient than the old one turned in, which would then be scrapped and used for parts and materials, saving the dealership from having to re-sell it.[2] "We believe it will stimulate sales of new vehicles, and thus help the industry and create jobs for American workers," Reuther said.[11]
An similar plan proposed a few months back failed to pass through Congress.'' Since European car sales were helped by a similar plan, this time could be different.'' The cost of the plan could be its downfall - the more people that take advantage of the plan, the more the government will have to spend.[7] If the bill gains traction, it will likely have a cap on the total cost and layout by the taxpayer, favoring consumers who act fast. The savings could be big for those buyers who take advantage of the program as it is written.[10]
In a statement, Ford said "the 'CARS Act' legislation is a win-win for consumers, the environment and energy independence.[1] The environment will be helped by the potential for thousands of less efficient models being taken off the road. I know that those models traded in could be re-sold and would not get trashed, but the would eventually replace other older models, so eventually there is a benefit. This is not the first "cash for clunker" proposal that we've seen thrown out in Washington, and it may die before Congress can approve it. It is smart way of helping the auto industry while also providing a spark to consumers.[12] Now, a revised version of that bill is being presented to Congress, and so far it'''s receiving wide ranging support from most in the U.S. auto industry.[13] The bill has already come under fire from free-trade advocates and some foreign auto makers who criticize a provision precluding vouchers from going toward cars built overseas.[6] We're not talking one-owner Hemi 'Cudas here, folks. The major lobbying effort against these bills comes from groups like the Automotive Service Assocation and the Specialty Equipment Market Association ( SEMA ), whose business is repairing and selling parts for existing cars. Understandly, they have a vested interest in keeping as many old cars on the road as possible. We hope the rhetoric (like the absurd headline on this story) can be toned down, and the two opposing views can agree on a few points.[8] A portion of the bill alludes to big incentives from 2011 to 2016 for vehicles getting 100 miles to the gallon, like the Chevrolet Volt.[2]
Tough luck Toyota. The point of this bill is to stimulate the U.S. economy, not the Japanese.[13] Questions_and_answers, you are exactly right. I can't fathom why on earth Ohioans, especially those in the northeast part of the state, would continue to give Ford and GM their business when they continue to treat this state like garbage, closing their plants here and laying off people constantly. They have effectively destroyed the northeast Ohio economy, yet people continue to support them because they're "American." Well guess what bub the Kansas City Ford plant isn't sending any of its tax money back here.[14]
Millions of Americans depend on there being a market for older, less expensive vehicles. This program would eliminate many of the "clunkers" these people purchase.[14] The legislation also offers transit vouchers in exchange for older, high emission vehicles.[5] The flipside is that none of the Asian companies' vehicles built outside North America would qualify for the vouchers.[10] Crazy, Most of the cars that were traded in for the "trade-in-premium" (voucher) are anything but junk ready. 99 per-cent have the Green certificate (which denotes a vehicle is environmentally friendly).[14] The credit can be turned into a $3,000 mass-transit voucher. The cars eligible for these programs have to be registered and roadworthy; you can't haul in a junkyard carcass to get your bounty. It appears that some car collectors envision SWAT teams breaking into your garage, seizing your priceless restored collector car, and tearing it into shards of useless metal, right there on your front lawn.[8]
If you want to reduce emissions, remember that 20 years ago, cars legally'put out 10 times the emissions of today's new cars.[8] Consumer Reports' cars reporters, editors, and testers will quickly report on new developments and trends.[4]
Hey, come on now, go easy on our Japanese Friends, remember, they are buying up all the bonds our government is printing to get the money that they're using to bail out the auto industry and banks. It won't be long till our unemployment and welfare checks are drawn on the Great Bank of Japan, and a colorful new "Land of the Rising Sun" flag will be flying above Whitehouse when they foreclose. Buy those Honda's, Toyotas and Sony products and show what a good loyalist you are.[14]
Auto-industry allies unsuccessfully pushed for a similar program, dubbed " cash for clunkers," to be included in the recently enacted economic stimulus plan. "The speaker is supportive of this concept and looks forward to reviewing the details of Rep. Sutton's legislation," Drew Hammill, a spokesman for Pelosi, D- Calif., said in an email. [6]
SOURCES
1. New Cash-for-Clunkers Program Introduced in Congress ''' Automotive News & Car Rumors at Automobile Magazine
2. Bipartisan legislation could get more clunkers off the road
3. $5,000 voucher pushed for new fuel-efficient vehicles | detnews.com | The Detroit News
4. "Cash for clunkers" revived as CARS Act: Consumer Reports Cars Blog
5. Legislation seeks to boost U.S. auto sales | Reuters
6. US Bill To Stimulate Car Sales Prompts Free-Trade Concerns
7. Rep. Betty Sutton introduces a cash-for-clunkers plan
8. The Government Is Going To Seize And CRUSH YOUR CAR!!! - Green Car Reports
9. Report: Cash for Clunkers Bill Returns - U.S. News Rankings and Reviews
10. New House Bill Would Pay Consumers To Buy Greener Vehicles - BusinessWeek
11. A heap of stimulus: 'Cash for clunkers' bill could jumpstart new auto sales | detnews.com | The Detroit News
12. Cash For Clunkers A Win/Win/Win? - Behind the Wheel - Phil Lebeau - CNBC.com
13. Revised Cash for Clunkers bill offers up to $7,500 for old trade-ins - MotorAuthority - Car news, reviews, spy shots
14. The Chronicle-Telegram - Lorain County's leading news source
15. Marty Padgett's blog: Clunker Love, American Style - The Car Connection
16. US: 'Cash for clunkers' scheme comes up again: Automotive News & Comment
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