A program known as ‘cash for clunkers’ is being considered for inclusion in the Senate stimulus package to make the U.S. auto fleet more fuel-efficient and stimulate demand for new, cleaner cars. Will the older vehicles will be scrapped or resold?
"U.S. auto industry lobbyists and lawmakers are discussing a proposal to give consumers as much as $4,500 in government vouchers to replace older cars with more fuel-efficient vehicles.
The so-called cash-for-clunkers proposal may not win enough support to be added to $819 billion stimulus legislation that passed the U.S. House and will come before the Senate, Alan Reuther, legislative director of the United Auto Workers union, said in an interview (Jan 30).
The scrapping incentive is opposed by the Specialty Equipment Market Association, a group of 7,358 companies that includes firms making and selling parts for older vehicles.
'We've got thousands and thousands of American jobs here that generate millions of dollars,' said Stuart Gosswein, director of regulatory affairs for the Diamond Bar, California- based group. 'Those jobs are threatened.'
The group instead supports a voucher or tax credit without the scrapping incentive, Gosswein said."
From Feinstein Press Release:
"A measure introduced (Jan. 14) by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to enable and encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a more fuel efficient vehicle."
Thanks to Mark Boshnack
FULL STORY: Cash-for-Clunkers Weighed by Automakers, Lawmakers
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