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Unload gas guzzler, get stimulus cash?
in-en.com  2009-2-1 11:15:08  

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For drivers who have a little rust on their gas-guzzling rides, some folks in Congress want to throw you this deal: a check for your wreck.

Backers of a cash-for-clunkers proposal are pushing to get the plan attached to the $819-billion economic stimulus bill that passed the House and will arrive in the Senate next week. They say the government could boost the economy and the environment by paying owners a few thousand dollars to scrap -- yes, they'd be crushed -- older gas guzzlers for vehicles that sip gas and pollute less.

Yet balancing the demands of automakers, environmental groups and unions could be impossible given the all-out push by the Obama administration to finish an economic stimulus bill in a couple of weeks.

"We're for any program that seeks to boost consumer confidence and get people into showrooms," said Bailey Wood, legislative affairs director for the National Automobile Dealers Association. But "a cash for clunkers plan is an uphill fight because of the need to get industry consensus."

A bill unveiled in the Senate earlier this month by U.S. Sens. Dianne Feinstein, D-Calif., Susan Collins, R-Maine, and Charles Schumer, D-N.Y., would give owners of models that get less than 18 miles per gallon vouchers of up to $4,500 toward a new vehicle. Only models built since 2002 would get the full $4,500; the amount would fall with the age of the jalopy.

The voucher could help buy a new or used vehicle that gets 25% better fuel economy than federal standards, or be swapped for bus and rail fares. The American Council for an Energy-Efficient Economy estimates the Feinstein plan would scrap 575,124 vehicles in its first full year at a cost of $1.1 billion, while generating 270,877 sales of new cars and trucks.

For example, turn in your 1999 Chevy Suburban and you'd get $3,000 toward a new car that gets at least 25% better gas mileage than the 14 m.p.g. combined the 2-wheel drive Suburban with a base V8 was rated for that year. Of course, depending on mileage, you might get more selling it.

UAW chief lobbyist Alan Reuther said that while the union generally supports the idea of promoting new vehicle sales, the Feinstein proposal is weighted heavily toward imports. Of the 114 models the council expects could be bought with the vouchers, just 42 are vehicles made by the Detroit Three car companies.

"If there was to be that type of program, it should be directly linked to the purchase of vehicles built in this country," he said. "Otherwise, it's using money to create jobs in Japan and Mexico, and that's not consistent with what the stimulus plan is supposed to do."

 


 
Author:JUSTIN HYDE  From:freep.com  Edit:Ashley
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