WASHINGTON, DC – Congressman Fred Upton (R-St. Joseph), co-chair of the Congressional Auto Caucus, applauded Thursday’s (June 18th) Senate approval of legislation that included the “cash for clunkers” provision to spur new vehicle sales and save jobs.

The car scrappage bill was included in the Supplemental Appropriations Act, H.R. 2346, which the United States Senate passed Thursday afternoon by a vote of 91 to 5.   The “cash for clunkers” measure passed the House as a stand alone bill on June 9th by a vote of 298 to 119 and was later added to the supplemental spending package, which passed the House Tuesday evening.  Once the President signs the measure into law, the program is mandated to begin within 30 days.

“‘Cash for clunkers’ is a jobs bill that will provide a much-needed boost to the auto industry and our region’s overall economy,” said Upton.  “And now, with the stroke of the President’s pen, we will soon provide long-overdue relief to an industry that impacts one out of every ten American jobs.  This is not a perfect package, but this bill is better than maintaining the status quo as it will help working families purchase a new vehicle, invigorate our economy and keep local suppliers and dealers in business.”

New car sales will provide needed revenues to ailing state budgets from sales tax, registration and other fees. This plan could result in up to $2 billion of sales tax revenue for states.  Also, by Energy Department calculations, a customer who trades in an 18 mpg vehicle for one that gets 30 mpg could save about $780 per year.  Sixteen other countries, including Japan and Germany, have implemented cash-for-clunkers programs and witnessed a marked increase in sales.

Under the legislation, consumers may trade in their older, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases.  Customers would trade in a car that has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon and is a model year of 1984 or newer.  If you buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one, you’ll get a $3,500 voucher. If the new vehicle gets at least 10 mpg better, consumers will receive the full $4,500.  Once the vehicle has been turned in, it can be stripped for parts except for the engine block, before it is destroyed.  Vehicle mileage ratings back to 1985 can be found at www.fueleconomy.gov.

The measure is supported by U.S. Chamber of Commerce, National Association of Manufacturers, National Automobile Dealers Association, United Auto Workers (UAW), Automotive Trade Policy Council, Ford, GM, Chrysler, Mazda, Ohio Automobile Dealers Association, United Auto Workers Local 2000, PPG Industries, National Paint & Coatings Association, AFL-CIO, Alliance of Automobile Manufacturers, Motor & Equipment Manufacturers Association, Specialty Equipment Market Association, Association of International Automobile Manufacturers, and the American Iron and Steel Institute.

Source:  News release from Congressman Fred Upton