April 16th, 2009
There is a lot of news about Cash for Clunkers today.
First from the Wall Street Journal:
Joseph B. White’s “Eyes on the Road” analysis of one of the “cash for clunkers” programs being proposed to spur trading in older, less fuel-efficient vehicles (”How Much Is Your Guzzler Really Worth?,” Personal Journal, April 7) concludes that the program’s success will come up short as the scrapping bonuses appear to be pegged below the current trade-in market for those vehicles. Mr. White seems to conclude that the program will end up being ineffective. My fear is that it will actually end up hurting the industry it’s designed to help.
SEMA has been very vocal in it’s opposition to Cash for Clunkers. Here is an article from this month:
SEMA challenges ‘Cash for Clunkers’ claims
The Specialty Equipment Market Association (SEMA) is disputing claims that vehicle scrappage programs, like the proposed “Cash for Clunkers” initiative, will reduce the United States’ dependency on foreign-sourced oil.
“Scrappage programs accelerate the demise of older vehicles, which are typically crushed into blocks of metal,” say SEMA officials. “These ‘Cash for Clunkers’ programs focus on a car’s age or fuel efficiency rather than its actual emissions or how much it is driven.”
Also, Chuck Shumer (D-NY) gave a speech in Buffalo today about Cash for Clunkers:
BUFFALO, N.Y. Press release - U.S. Senator Charles E. Schumer on Thursday, April 16, 2009 detailed his legislation to create a national voucher program, known as “Cash for Clunkers”, that would enable and encourage Western New York drivers to trade in their older, less fuel efficient cars, trucks and SUVs for more fuel efficient vehicles.