Cash for Clunkers Opposed by AAIA

As we have documented on this website, not all Americans are in favor of the Cash for Clunkers measure. The reasons are many and vary from complaints that the measure is as “green” as first intended to calls that the monies can not be used by the rich.

Now found an automotive industry group that is also opposing the proposed bill. In a press release dated May 20, 2009 the Automotive Aftermarket Industry Association, the group outlines their opposition. They also call for consumers to join www.fightcashforclunkers.org.

Here is an exerpt from their press release posted on their website:

“‘Cash for Clunkers’ is touted as protecting the environment by taking older vehicles off the road and replacing them with new, more fuel efficient vehicles. The reality is that these scrapped vehicles will be heading to landfills. It’s ironic that a proposal designed to reduce pollution will actually further damage the environment,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA). “While the true intention of this legislation is not to protect the environment but to financially stimulate the automobile industry in the short term, the hidden costs of this bill could cause environmental havoc indefinitely.”

The “Cash for Clunkers” amendment, included as part of the American Clean Energy and Security Act of 2009 (HR 2454), states that “For each eligible trade-in vehicle, the title of which is transferred to a dealer under the Program, the dealer shall certify to the Secretary, in such a manner as the Secretary shall prescribe by rule, that the vehicle, including the engine and drive train:

 i) will be crushed or shredded within such period and in such manner as the Secretary prescribes, or will be transferred to an entity that will ensure that the vehicle will be crushed or shredded within such period and in such manner as the Secretary prescribes; and

ii) has not been, and will not be, sold, leased, exchanged or otherwise disposed of for use as an automobile in the United States or in any other country, or has been or will be transferred, in such a manner as the Secretary prescribes, to an entity that will ensure that the vehicle has not been, and will not be, sold, leased, exchanged or otherwise disposed of for use as an automobile in the United States or in any other country.”

“Cash for Clunkers is loaded with so many potholes that the American people will be paying a steep bill both economically and environmentally for a long time,” continued Lowe. “In addition to the wasteful nature of destroying perfectly good vehicles, a tremendous amount of energy and resources will be exhausted to build new vehicles to replace the scrapped ones. Providing incentives for motorists to have their current vehicles maintained for fuel efficiency would be a much better use of federal money that would truly benefit the environment.”

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