Thursday, July 30, 2009

No More Clunkers Being Taken

I hesitate to get political in the Internet format, but couldn't resist upon reading the news today.

If you live in the United States and you've watched TV for a 10 minute segment or even possibly read the news, I'm sure you've heard of the "Cash for Clunkers" program that our US government came out with to encourage the sales of new vehicles. This program has been suspended as of today because of the massive demand for the rebates that come with the program. The program offered rebate coupons of $3500 and $4500 for vehicles that met specific criteria (Mileage specifications, etc.).

The initiative only has a $1 billion limit per the congressional officials that put the delay on the rebates (link to a great article for details here:;_ylt=AvzH44l9JyGCyQUCllYMIsOs0NUE;_ylu=X3oDMTM2ZzE2dW4zBGFzc2V0A2FwLzIwMDkwNzMxL3VzX2Nhc2hfZm9yX2NsdW5rZXJzBGNwb3MDMgRwb3MDOARwdANzZWN0aW9uc19jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Fwc291cmNlc2dvdg--). There was also an expectation of 250,000 vehicles sales that were to be accounted for with the $1 billion of earmarked funds for the "Cash for Clunkers" program. It's thought that of the 2000 dealers that are involved with the program, they've possibly over sold the 250,000 limit that the government expected.

I have mixed feelings about this whole program and how much it's really going to help our economy and the auto industry in general. We're getting rid of vehicles on the road that could conceivably be fixed and or maintained for much more use and mileage. Instead, we are "recycling" these vehicles (read, crushing and disposing of properly, not efficiently) to be reused when and where convenient. An article that illustrates that complex deficiencies can be found here:;_ylt=AvzH44l9JyGCyQUCllYMIsOs0NUE;_ylu=X3oDMTM2ZzE2dW4zBGFzc2V0A2FwLzIwMDkwNzMxL3VzX2Nhc2hfZm9yX2NsdW5rZXJzBGNwb3MDMgRwb3MDOARwdANzZWN0aW9uc19jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Fwc291cmNlc2dvdg--. Apparently our government didn't account for the fact that many companies can strip cars of transmission and motor parts for use in parts sales, etc. This somehow got neglected, even in the midst of the "green" initiatives that drove this program.

Now, don't get me wrong. I think our government is headed in the right direction with "green" intentions, however, when we get politicians involved in the auto industry, and the many intricate facets of it, we're going to get convoluted results. I just hope that we continue to move in positive directions in the future, stressed out economy or not.


  1. You need to figure out how to hyperlink text bro!

  2. Oh I know how, I just haven't done it that way.