CARS program replenished and ready to drive sales, jobs, fuel-efficiency

Shortly after I wrote last week's blog post on the success of the Administration's CARS program, President Obama signed a $2 billion addition to the program passed by the House and Senate. Now, even more consumers can use this rebate program to lower their fuel consumption.

Signing the bill, the President said:

"The program has proven to be a successful part of our economic recovery and will help lessen our dangerous dependence on foreign oil, while reducing greenhouse gas emissions and improving the quality of the air we breathe."

And, in working for the extension, Michigan Senator Debbie Stabenow said:

"The reality is this is a program that has been working. Consumers believe it's working. Small-business people believe it's working. People who make steel and aluminum, and advertisers … and everyone who's involved in the larger economic impact of the auto industry believe it is working."

But it's not just political leaders; folks from outside the world of politics seem to agree as well. Analysts from Credit Suisse found that “the program for auto sales has been a dramatic success and could drive auto sales and production sharply higher in the coming months.”

And technology entrepreneur Jack Hidary writes on CNN that the CARS program:

"is helping consumers move beyond these hard times and has reignited a whole industry, saving jobs up and down the auto supply chain from dealers to assembly workers and parts makers."

Now that's exactly the kind of stimulus the Administration had in mind for CARS. Dealers avoiding layoffs. Parts makers adding shifts. And scrap yards working around the clock to recycle gas guzzlers.

And all of this is happening, as President Obama noted, while drivers trade up in fuel economy, saving millions of gallons of gas and their associated tons of greenhouse gases.

Even some skeptics of the program have been pleasantly surprised; environmental advocate Joseph Romm writes on Grist that, "as a stimulus that saves oil while cutting CO2 for free - it has turned out to be a slam dunk, far better than I had expected."

Well, I wasn't a skeptic, but even I am surprised by the enthusiasm--and benefits--CARS has generated.

So, I want to thank the Congress for passing the extension; the President for signing it into law; the folks administering the CARS program over at www.cars.gov for keeping CARS operating smoothly; and everyone around the country from drivers to dealers to tow truck operators and scrap yard folks for making this such an effective example of what this country can do when we work together.

Comments

[Fraser Young]

Green Vehicle Exchange has the comprehensive afterclunkers plan fully designed and ready to go.

Met w/many @Congress(Sutton, Israel, Stabenow), CAP, Michigan Governor, et al would like to speak to Secty Lahood on effective balanced perpetual(yrs & yrs) system we have ready to step in for long term economic glory.

Stimulatingly;

Fraser Young

[Michael E. Bailey]

CARS is also agreat program because of all the sales tax money going to cities, counties and special districts. Orange County Transporation Authority had a plan that would have completely shut downand closed a number of fixed route bus lines including all the ones in south Orange County. OCTA ACCESS is set according to what happens on the fixed route busses; so if routes were eliminated ACCESS service on those routes would be too. Lots of disabledpeople living and working in south county would be left stranded. But OCTA also has the voter approved Measure M that gives so much in sales tax on each purchase to OCTA. CARS will be helping to preserve transit and disabled access across Orange County, especialljy south county. Some sales tax money goes to the school district which is also important. The Adult Ed Program includes Vocational Visions, the largest employer of disabled persons in all of south Orange County with 2 large workshops, day programs and supported employment program. Staff salaries are paid by the school district and there had been talk of Vocational Visions having to shut down because the district wanted to end the Adult Ed. program. So CARS is helping on this issue with increased sales taxes , and these are only two of many examples nationwide. CARS is a great program in many ways. Thank you and best wishes, Michael E. Bailey.

[Skip Outcalt]

Recycling is GREAT! I keep myself in model airplane kits by recycling aluminum cans. But I have a question: The recycler I go to pays $70/ton for magnetics -(iron and most steel. That works out to about $175 for a 5000 pound car. Where does the other $4325 come from?

[GINY]

I work for a dealership and we're waiting on $450,000 in CARS money - needless to say, thanks to CARS, we're broke! I spoke with a person who works for Citigroup (a customer) and she says hiring has been slow to take care of the back end work since the contract with Citigroup was hidden from the public. Pay is 1 month behind and we're very disappointed in the way this is being handled. Not very happy in Buffalo!

[GINY]

Why does the NHTSA hide all negative comments about CARS, like how dealers are NOT being paid on time - AS PROMISED? Thanks for keeping up a "FAKE" image. I work for a dealer and know the truth... will be blogging about it extensively.

[Craig Parker]

I took advantage of trading in my 1987 Cadillac that got 18mpg in on leftover 2009 Kia Spectra that gets closer to 30mpg. I wrote out a check for it along with state sales tax, title and registration fees on Monday. I came back to get the car as told on Tuesday morning and the owner of the dealership would not give me my car until the transcation was confirmed by the CARS computer. I had to call the CARS line and speak to a manager who told me that the dealer had to release the vehicle to me. When confronted with threats to report his dealership to the CARS Fraud line and the State Attorney General, he finally gave me the keys and I left. When I got home, I found that there was no registration (he had told me it would take five minutes to print up) and he had not put an inspection sticker on the vehicle as promised. Today is Saturday and my vehicle has still not been registered or inspected and two days of phone calls to the dealership have gone unreturned. I must say that for a program that should have been a complete success, this turned into a nightmare and one of the reasons being this dealer had not gotten paid for one transaction from the CARS program. I can't wait to see Cash for "freezers"!!

craig

[car exahust]

they need to invest in frastructure