Congratulations, automobile dealers of America!

Today, I spoke to the National Automobile Dealers of America and thanked them for participating  in the single most successful short-term economic stimulus program in history.

By now, it's pretty clear that the Car Allowance Rebate System, or CARS program, succeeded beyond everyone's expectations, and we can all take pride in what we’ve accomplished. Working together, we have delivered the goods to provide a struggling economy with a significant boost.

• August retail sales up 2.7%
• August automobile dealer sales up 10.6%
• Sales boosted by about 440,000 vehicles between June and August
• One of the largest 2-month spikes in auto sales on record
• Increased production at Ford, GM, Toyota, and Honda
• 60% improvement in fuel economy
• $3.6 billion contributed to GDP for 2009
• Millions in local and state sales tax revenues to cash-strapped states

That's not a bad list. But, in the process, we’ve also shown that when the federal government and the private sector team up to take bold action, the American public reaps the rewards. That's the kind of partnership I'd like to see more of.

As of this morning, 565,690 CARS vouchers have been paid. That means more than 70 percent of dealers have been paid already. This represents almost $2.4 billion paid or in the pipeline.

I’m enormously proud of the men and women at DOT. Not only did they help get the CARS program up and running in 30 days, but many of them have also worked around the clock to process applications and resolve the issues generated by such a huge response.

The CARS program has worked--it has worked for hard-working families, the local dealerships that serve them, and the domestic auto industry we all depend on.

So, again, a hearty "Thanks" to all of the auto dealers who partnered with us to keep America moving.

Comments

[Douglas P. Scott]

Thank you for increasing the number of employees within the CARS department and ensuring our money got processed faster.

At my dealership, Scott Honda we floated about $700,000 out there, with the hopes that we would be paid back promptly. We are currently at about a 60% payback, with more checks rolling in each day.

If this program ever rolls out again I would beg you to fix the web submission process so folks aren't setting their alarms for 3:00 a.m. to submit claims that took on average 25 minutes a clunker.

[Michael E. Bailey]

Cash for Clunkers was a huge success and the only bad thing about it was it can't continue. It also had an important environmental impact as well. Since transportation contributes up to 40% of the total for greenhouse gases into the atmosphere and cars and light trucks account for a lot of that, Every new energy efficient car sold through Cash for Clinkers is putting less greenhouse gases into the atmosphere. The new fuel efficency program announced yesterday will have a major impact on greenhouse gas reduction as well as making cars less costly to operate. The Cash For Clunkers in a way has laid the foundation for the new fuel efficency program. Best wishes, Michael E. Bailey.

[twitter.com/John_S_Niles]

With the vast majority of mobility in our country provided by automobiles, it's a good thing for the Administration to invest in improved energy efficiency for the private vehicle fleet ... average 16 mpg cars scrapped in exchange for less polluting 25 mpg cars!

Next steps in the greening of transportation should include stimulating the implementation of automobile energy sources that are more sustainable than the oil imports we now depend on.

[Michael E. Bailey]

The Cash for Clunkers Program was a great program. The California Air Resources Board is starting its own version of the Cash for Clunkers Program. Their's is going to be called the Clean Vehicle Rebate Project. Rebates will be up to $20,000 for zero emission and plug-in hybird cars and pickup trucks. They are getting ready to take bids soon for the contractor that will administer the grants. So the program will probably get to consumers around the first of the year. Best wishes, Michael E. Bailey.

[Answering Service]

It will be interesting to see if the program simply moved imminent purchases up by a month or two. If sales do not fall off a cliff in September and October I will join in congratulating you on a job well done.

[discount auto parts]

Two-thumbs up!!!

[auto transport company]

"Cash for Clunkers" was great for the auto transport industry as well. Thousands of vehicles were relocated across states and the program helped many truckers to stay in business in this struggling economy. Great job by US Department of Transportation and Government. Thanks

[Alex T]

Do you know that Toyota Corolla was the bestseller for this program while the top popular trade-in vehicle was Ford Explorer 4WD? This is very interesting... the top trade-in is US-built while the top-seller is Toyota.
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