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‘Cash for Clunkers’ Program Ought to be Scapped

May 19th, 2009 · No Comments

Should this Chevy Tahoe Be Crushed?In my Jan. 31 post about the federal government’s proposed “Cash for Clunkers” program, I noted one group’s staunch opposition to the concept:

The Specialty Equipment Manufacturers Association has found something in the economic stimulus package its members don’t like.  Known as the “Accelerated Vehicle Retirement Program,” this item not only crushes cars, but it crushes jobs and businesses as well.

Today, I bring news of a second organization — the Engine Repower Council — that strongly opposes the program that is part of the current economic stimulus package being considered by Congress.  In a news release, ERC officials made this argument about Senate Bill 247 and House Bill 520:

The Cash for Clunkers program would earmark federal funds for car owners to trade in their older vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. These programs are of concern to the vehicle aftermarket since vehicles are scrapped that could be more cost effectively repaired, increasing the country’s carbon footprint and reducing the availability of parts for rebuilders.

Congress has considered Cash for Clunker proposals in the past and has decided against them in every case. In fact, states are prohibited from using federal funding for state-run Cash for Clunkers programs under the Congestion Mitigation and Air Quality Improvement Program (CMAQ). There have been numerous attempts to lift this prohibition, however once lawmakers realize that Cash for Clunkers programs focus only on a vehicle’s age and not its emission levels, they understand that these programs are not cost-effective and do not positively impact air quality or fuel economy. Therefore, time after time, the prohibition has remained in tact.

“Many states have attempted to implement this type of vehicle retirement program in the past, but have abandoned the effort because they simply don’t work,” said Steve Rich, chairman of the Engine Repower Council. “While the programs have a certain appeal to politicians and are sold on the fact that they will get older vehicles off the road, the fact is that these programs reduce the availability of affordable transportation for drivers who, by taking such steps as engine repowering, can keep a vehicle in safe, efficient working order rather taking on the expense of a new vehicle.”

If you think the Cash for Clunkers program deserves to be scrapped, make your voice heard by CONTACTING YOUR ELECTED OFFICIALS in Washington, D.C., and demanding they oppose this measure.  In addition, you can learn more about the program by visiting FIGHT CASH FOR CLUNKERS.

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