Back in January, we told you about a bill that was introduced in the Senate being called the "Cash for Clunkers" program that would give vouchers to drivers who traded in older, inefficient cars for newer, more efficient ones. At the time, it seemed to be a long shot, but recent events have brought new life to the plan.
President Obama's support of the program in his address on the auto industry on Monday has thrown a spotlight on the idea and similar programs in Europe have proven successful, which has also boosted the plan in Congress. Two versions of the bill currently exist, one by Rep. Betty Sutton and one by Sen. Dianne Feinstein. They are very similar, but differ on the price limit of the new car as well as whether the program should be restricted to American-made cars.
Many support the idea of limiting the program to cars made by U.S. automakers, but that restriction could violate World Trade Organization rules.
Obama has said money for the plan would come from trimming another program in the Recovery Act, so surely the bill will face opposition from the unlucky program's supporters.
via Wall Street Journal
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Comments (18)
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written by Lawrence, April 02, 2009
I read your info on the cash fo clunkers and it states that should it be for American made cars, I am curious what constitutes an "American Made" car, what percentage of work is done in the US, alot of parts for the US cars are not made in the US or the raw materials. The enviromental, labor laws that are missing in other countries is one reason that these companies us foreign produced product. I come for a family that was supported by a "US Automaker" and even in the 80's alot of parts where foreign source. I think we need to make sure we follow the principals and not just slogans. Thanks for the time.
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written by russ, April 03, 2009
The whole concept is just a hand out - begging for easy cash.
I detest the "Ask not what you can do for your country but what your country can do for you" generation or group. JKF would cry!
The Buy American bunch which is normally conservative seems to have gained a whole new membership!
I detest the "Ask not what you can do for your country but what your country can do for you" generation or group. JKF would cry!
The Buy American bunch which is normally conservative seems to have gained a whole new membership!
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written by Paul, April 03, 2009
The US auto industry has had its day. For at least a decade it has had no relevance to the rest of the world because US cars so poor in design and quality.
It would be better to allow Ford, GM and Chrysler to fail completely to allow more advanced countries supply the US's automotive needs.
It would be better to allow Ford, GM and Chrysler to fail completely to allow more advanced countries supply the US's automotive needs.
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written by Wes, April 03, 2009
I think this would be the best way to get those old polluting cars of our soil. This gives money back to those with cars who don't even deserve that much money and it regernerizes the American auto-industry.
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written by Ben, April 03, 2009
The more old bangers the better, each new car wastes resources, and requires huge amounts of energy to be produced.
What will an efficient car be? Here in europe an efficient car is capable of 60-70mpg (british gallons (4.5litres vs 3.8), e.g. the majority of new diesel renault cars. What will the US government count as an efficient car, I hope it is nothing less than 50mpg. Will such a scheme be in place for bicycles and motorcycles also?
What will an efficient car be? Here in europe an efficient car is capable of 60-70mpg (british gallons (4.5litres vs 3.8), e.g. the majority of new diesel renault cars. What will the US government count as an efficient car, I hope it is nothing less than 50mpg. Will such a scheme be in place for bicycles and motorcycles also?
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written by paulinstl, April 03, 2009
For 95% of us, the greenest car is the one you own. The majority of cars that people buy aren't going to be THAT much better than the ones they have anyway. All they're doing is adding to landfills and incurring the total sum of energy put into the process of producing a new car.
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written by Selfishly Confused, April 03, 2009
On the one hand, my truck is 12 years old, and perhaps close to "the end". A government check would certainly help in these tough economic times. On the other hand, I recently dropped collision insurance, as the truck has, effectively, no market value, and it is taxed accordingly. So this is ambiguous as to the economic benefit for me. As for the environment, I get a real-world combined city/highway 26mpg, despite the 200,000 miles on the odometer. I suspect the environmental benefits of recycling this vehicle will be minimal.
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written by bob, April 03, 2009
My "clunker" gets 30 to 35 mpg and it's paid for. I can't see any possible scenario where getting a brand new car would be beneficial for me unless the mileage is high enough to offset the price of making car payments.
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written by Laurie, April 03, 2009
We recently wrote about Retire Your Ride, which has the same idea as the Clunker initiative. Great incentives to bring in your smog-creating vehicles.
Laurie
http://ecoki.com
Laurie
http://ecoki.com
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written by Rom, April 04, 2009
I hate to say it and love to say it at the same time.
If we restrict this deal to American cars, odds are, we will not be gaining anything environmentally from the program.
American car makers are notably less efficient. So why bother? I get 26 mpg out of my Rav 4. If I get a new American made, I might get 32mpg. I can save 6 mpg by leaving my kids at home on my next trip!
Seriously. It's not worth it the environmental impact of scrapping old cars and building new ones unless they include the high efficiency vehicles. Most of which are not American made.
If we restrict this deal to American cars, odds are, we will not be gaining anything environmentally from the program.
American car makers are notably less efficient. So why bother? I get 26 mpg out of my Rav 4. If I get a new American made, I might get 32mpg. I can save 6 mpg by leaving my kids at home on my next trip!
Seriously. It's not worth it the environmental impact of scrapping old cars and building new ones unless they include the high efficiency vehicles. Most of which are not American made.
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written by Preston, April 06, 2009
I can hardly wait to get rid of my 20yr old Geo Metro, that still gets 45+mpg, and 'upgrade' to a state-of-the-art 32mpg new car. Added payments
and fuel costs are very inviting.
What an improvement it will be! :)
Progress, US style, is rather unique
to the rest of the world.
and fuel costs are very inviting.
What an improvement it will be! :)
Progress, US style, is rather unique
to the rest of the world.
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written by MarkR, April 06, 2009
I'm against any plan that will take more of my money and give it to some schmuck. Especially if it will be cars from GM (Government Motors).
all Obama has done is, polarize the American public. I've gone from very progressive moderate conservative, to hard right radical conservative.
Thanks Obama for re-energizing conservatives.
Don't forget to join a tea party in your town on the 15th.
all Obama has done is, polarize the American public. I've gone from very progressive moderate conservative, to hard right radical conservative.
Thanks Obama for re-energizing conservatives.
Don't forget to join a tea party in your town on the 15th.
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written by carectomy, April 06, 2009
Cars are the most inconvenient convenience we have. We're required to have them, but increasingly, we dislike them. At Carectomy, we're trying to figure out how to extract cars from people.
The operation is a little bit painful, but life afterward is much more awesome.
The operation is a little bit painful, but life afterward is much more awesome.
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written by Musson, April 06, 2009
How do you pay for removing low mileage cars? You tax those who continue to drive them. (Although they are currently paying a disproportionate amount of the gas taxes.)
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written by One more thing, April 07, 2009
How will these vouchers effect the price of both new and used cars on the market. I mean if I know that someone can get a $4500 voucher for a clunker, then couldn't owners justify selling clunkers for more than they are currently worth?
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written by MarkR, April 07, 2009
carectomy? What the hells that doing still around. there hasn't been a new article at that site in over 6 months. before you worry about extracting cars from people you need to worry about extracting pertinent up to date articles from your mind and keyboard to your web page. until then go away.
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written by cc, April 19, 2009
it seems to me that some of you have not done much further research on this bill. If you click on the link in the first sentence of this article you can gain a better understanding of the basics of this bill. one of those "basics" would be that you can't trade in a vehicle that gets over 18 mpg. this would work to some length to negate your scenarios of people trading in their efficient clunkers for inefficient suv's, i.e. there would almost be no situation where fuel economy would be reduced in going from the clunker to new vehicle. now whether or not this difference makes up for the extra energy required to manufacture the new vehic is another argument. however the process of automobile recycling is one of the most efficient...i personally would like to see an increase in the efficiency requirements of the new vehicle and some kind of protection for vehicles made before 1973--the classic iron. bipolar kind of request i guess but w/e.
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