An effort proposed in Congress last month to jump start sluggish new car sales in the United States has apparently been canned. The so-called “Cash for Clunkers” program, which would have provided up to $16 billion in rebates to buyers of new, efficient vehicles, was met with applause from automakers but criticism from many Republicans.
The one issue that met the most debate was that the vehicles eligible would have to have been assembled in the United States – tilting the bill in favor of the Detroit Three. Despite enthusiasm from President Barack Obama, Iowa Democrat Senator Thomas Harkin pulled the amendment, citing concern from Republicans representing states where foreign automakers build cars. Even though those vehicles would have been accepted in the program, there was concern that the bill should not be limited to just U.S.-built automobiles from foreign companies.
The program would have called for up to $4,500 in vouchers aimed at putting drivers of older, less efficient vehicles in new, clean vehicles – both reducing energy and stimulating new car sales.
A plan for the government to purchase up to $600 million in fuel efficient new vehicles to replacing aging fleet vehicles is still under consideration, even though there is some indecisivness among politicians over the issue.
Senate Minority Leader Mitch McConnell was among the plan’s detractors, however.
“I doubt if the government buying $600 million worth of automobiles would provide the kind of stimulus that we’re talking about here,” McConnell said on Sunday in an appearance on the CBS’s “Face the Nation.”



02/06, 1:01 PM
posted by:
Other Man
I can’t say I think this is a good idea either.
02/06, 1:03 PM
posted by:
beatusmongous
“The one issue that met the most debate was that the vehicles eligible would have to have been assembled in the United States”
Are those the new cars, or the cars being returned?
The city and state owned vehicles in my town are Honda and Toyota Hybrids. Only police cars and utility trucks here are American, and I’ve seen some Titans and Tundras, too. Way to go, Harry Reid!
02/06, 1:12 PM
posted by:
Borat
It is insane to reject this bill. It would provide direct “push” for auto sales. It could be viewed as protectionist issue, since it covers only cars made in US, but it would help stimulate sales of those cars and keep people building them.
02/06, 1:14 PM
posted by:
JMBII
Damn.
As soon as this got passed I was going to go buy me a clunker and get my incentive…put it towardsa CTS.
02/06, 1:22 PM
posted by:
Need more oil for GM
Why did LLN put a picture of the Grand AM up there? Those cars were some of the best in class. 300 – 400 thousand miles easily out of one of them with just brakes, tires and oilchanges. LLN, you should put up a picture of a late model import. Those are the only clunkers out there and that usually happens after the first 6 months.
Buy American. Buy GM. It is your patriotic duty
02/06, 1:24 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Stupid constraints will kill this bill. They should have simply made it where the incentive money would have to be applied to one of the Big 2.0001 no matter if you got rid of a foreign or American clunker. Stupid politicians.
02/06, 1:42 PM
posted by:
Borat
LLL3, I suspect that Big 2.001 don’t hold the largest share of cars made in US. It maybe that their cars are made in Canada and/or Mexico, while transplants are made here. I can’t be sure, I don’t have factual numbers and have no intention to conduct research, but this may be the case.
Wold be smarter to follow British model: give credit for fuel efficient and less polluting vehicles using argument that it will help environment. We would conserve gas, pollute less and stimulate economy.
02/06, 1:46 PM
posted by:
beatusmongous
I used to eat GrandAms like that one for breakfast in my ‘76 280Z, and my Z was nothing to brag about.
My Z had 266,000 miles when I got it. I put another 100,000 on it before I ran it through the flood water. My Z was a salvage vehicle from a wreck that my dad was in, and it sat for 8 years before I acquired it. I gave it good electricity, good gas, and it started right up. Of course, I had to repair the whole right side, frame, body, suspension and driveline, but that thing didn’t quit until I killed it in the floods. I even got it running after the floods, and I drove it several times afterwards. But I needed to get into something a bit safer (it ran, but it wasn’t smooth anymore), so I sold it.
I’m not saying a GrandAm couldn’t do that, but it certainly couldn’t beat that Z in a straight line or on a track, especially after what my Z went through.
You know a car is a good car when you miss it… *sniff*
02/06, 1:56 PM
posted by:
sj79
why did they kill this? How could you be AGAINST encouraging people to buy cars made in the US? Why the hell should the government offer incentives for us to buy cars made in Germany or Japan? These GOP reps are idiots.
02/06, 1:57 PM
posted by:
Scarface03
Wow, I’ve never even heard of this. Just as well, this would have been dumb. Dumb, dumb, dumb.
I can’t fathom spending tax dollars to encourage people to trade in their clunkers. On my drive home, I go passed about three used car lots and I could count on one hand the number of cars that cost *more* than $4500. Someone else already hit on the get-rich-quick scheme of buying clunkers to trade them in. Could this program weed out the profiteers.
Besides, isn’t driving a clunker eventually its own damn incentive to buy a new car. Well, Scarface03, you might be saying, this program would encourage folk to buy *new* cars, instead of another used one, to support the auto industry. Yeah, I can see that, but if people are driving clunkers, they’re not supporting the new car industry anyway, and I don’t want my tax money to support those guys.
If you’ve got $16 billion burning a hole in your pocket, Uncle Sam, then give it to the D3, or better yet, loan it to them, so they can survive long enough to make cars that people–without incentives–will *want* to buy.
02/06, 2:05 PM
posted by:
Lariat Luxury Locomotive Liner No.3
No More Oral for GM is chomping at the bit for this program to go through as he has a parking lot of GM clunkers in someone else’s South forty. He’ll be able to get several free cars with his vouchers!
02/06, 2:13 PM
posted by:
CADDY-V
beatusmongous-
The police bikes around where I live are Hon-DAAS and It’s FU*king sad.
The government cars are gm and Ford and that is the way it should be.
It’s a sad day when are own people sell us out and support the japs.
02/06, 2:22 PM
posted by:
valenburg
to make it only to buy the big three cars would kind of make it un-American I think. Passing this bill also probably would have made a lot of other companies start to struggle as well such as the one’s who re manufacture parts for the clunkers. It probably would have killed a lot of cars which in turn would prevent enthusiasts from finding cars they would buy themselves use for scrap which would also hurt companies who make parts for those car. I’m not a new car buyer I’m more of an enthusiast but, it’s also not my fault that companies from other countries made products that were more appealing to Americans.
02/06, 2:27 PM
posted by:
mayer_ray_nagin
Congress itself should be junked. (along with the pork bill)
02/06, 2:31 PM
posted by:
Xile
Nice to see the Republicans bending over for the foreign automakers.
02/06, 2:42 PM
posted by:
sj79
Apparently two industry groups opposed this provision but I dont know which groups. I guess they are concerned it would hurt VW and MB in the long run.
02/06, 2:51 PM
posted by:
tripleonefive
Funny how they out a picture of a GM up there for a clunker… Makes sense
02/06, 2:58 PM
posted by:
Ed103
Perhaps we should look at the car market and the economy at a global level. Yes, American companies are in trouble, but every automaker is and so is most every company in any field right now and most countries. It’s not just an American problem, but a global problem. Then one could argue, “well, it’s our tax money, it should only benefit the U.S.!” That is a fair view, but America leads the world. No one can argue with that. When Obama was elected, the world watched and rejoiced, hoping that he could bring us back from recession, and then the rest of the world with us.
Most societies do not share our consumerism point of view. Many in Europe buy goods that will last a long time, like furniture and clothing. In many Asian countries people save more money and do not buy more of everything like we Americans do. Replacing electronic goods constantly that are fine, but not the latest thing is an American way of thinking. As is always have a car payment (meaning we get a new car once our old lease is up or car is paid off). Americans buy lots of everything, which is partially why things are cheaper here than they are overseas, but also why the global economy can work. Granted, I’m no economist, this is just logic and common sense.
My point being, as Americans we need to get our **** straight, and not be so blinded by tunnel vision or overdone patriotism that we forget we lead the world. If something we do partially benefits another country, that’s not necessarily a bad thing, and in the end, it’s a global economy.
02/06, 4:10 PM
posted by:
Borat
Ed103, you make very good point, but it is on the board that is bend on false patriotism sprinkled with rather heavy racism.
02/06, 5:35 PM
posted by:
valenburg
half the ppl on this board want you not to buy american (big 3) and the other think the japs and the euros are trying to kill america. Every body just wants to make a buck in the world.
02/06, 5:48 PM
posted by:
Zcarsales
Xile, have you ever heard the saying.
“A rising tide lifts all boats.”
A bill exclusive to only domestics would be an unfair business practice mandated by the government.
Secondly, beastusmongous, why are you bragging about beating on a Grand Am? I beat a GT V–6 with my 2000 Saturn LW2.
02/06, 6:08 PM
posted by:
A4
yes 1115, you sucker of the asian ****, its hilarious that they used an american clunker for an american article, for an american program, which promotes american made cars.
02/06, 7:56 PM
posted by:
DrFill
I’m not a big fan of the name
I like “Millions for Monkey Crap”
DrFill
02/06, 9:05 PM
posted by:
krautninja
as much as i disagree with it being exclusive to american cars, they might as well go ahead and approve it. People that want foreign cars wont care about incentives, they buy the foreign cars because that is what they like regardless of added perks. this incentive will sway a few bargain shoppers who want the extra money in their pocket but face it, someone in the market for a bimmer or benz is unlikely to step into a caddi or lincoln just for some extra tax breaks. and the family moms that are die hard camry fans are still less likely to bend their will to get a malibu just for some extra cash either
02/06, 9:41 PM
posted by:
elviososa
the limitations of the bill is stupid….no matter what country the car came from….if it sale in the U.S. all people in the U.S. will get benefit from it….the bank…the car dealers…the banks…the consumers…the car wash…the mechanic shop…the wall street…the whole country.
Why there are so many stupid people running the U.S.?
02/07, 3:18 AM
posted by:
beatusmongous
Zcarsales, I wasn’t so much bragging about my a as I was slamming the GrandAm.
02/07, 9:34 AM
posted by:
Zcarsales
ahh, ok
02/07, 9:35 AM
posted by:
Zcarsales
elviososa, we elected them.
02/07, 12:34 PM
posted by:
beatusmongous
I love it. My iPod changed “my Z” into “my a”. That’s what I get for not paying attention…
Elvio, not all of us elected them. I’ve been against Harry Reid for years, and I supported Mitt Romney and wasn’t very happy with the choices in the end. However, the majority of Americans DID elect these losers, which isn’t saying much about Americans, is it?
02/07, 6:31 PM
posted by:
tripleonefive
Oh thats right A4 I agree there are no asian clunkers and thus that is why the program is for american cars
02/08, 11:56 AM
posted by:
S1L1SC
Right, because we need to encourage those people that have adjustable mortgages and can not pay they bills right now to buy a new car…
Worst idea I have heard in a long time. Instead of all this “stimulus”, (1.5 trillion last time I added it all up – 700billion for the banks & now another 800 billion in Obamas bill) we should send a check to each and every American tax payer that paid taxes. U.S. population is 300 million, assuming around 200 million actually pay taxes that would be a check for roughly $7,500 each. How much more stimulus do you need?
Stop all this stupid pork spending and give the money to the tax payers that you are taking it from in the first place. (or lower taxes by 3% across the board…)
02/09, 8:18 AM
posted by:
Me
Good. All we needed was yet another enabler plan that helped people “afford” what they can’t pay for. People that have ten+ year old cars either can’t afford a new one, like the one they are driving, or just don’t care. This was pointless and I’m glad Republicans finally have a backbone.
02/09, 6:15 PM
posted by:
Ring-Taxi
Why is there a Pontiac in the headline? Oh yeah, it’s because they build excrement!
02/26, 12:19 PM
posted by:
jackjimturkey
Why is there a photo of Grand Am there?
Oh, they probably wanted to DRIVE the car to the shoot, rather than push (accord) or tow (camry) it.