Administration plans to wind down clunkers program

Discussion in 'Wall St. News' started by ASusilovic, Aug 20, 2009.

  1. WASHINGTON (AP) -- The Obama administration is developing plans to wind down the popular Cash for Clunkers program and could announce by Friday when the incentives will no longer be available.

    Transportation Secretary Ray LaHood said Wednesday the department would announce within 48 hours how it intends to discontinue the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. Department officials met with car dealer trade groups on Wednesday to discuss how the program will eventually end and respond to complaints over a backlog of rebate payments to dealers.

    Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program's $3 billion in funds in early September. The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don't end up on the hook for any of the incentives.

    "We want to make sure that dealers know when we're getting close" to running out of the money that was allocated for the program, LaHood told reporters. LaHood said he recognized that "dealers are frustrated. They're going to get their money."

    Why shutting down such a successful taxpayer program ?:confused:
  2. GTS


    BTW, they announced it will end Monday.

    How could a program where you give money away NOT be successful?

    Every time I heard a news report calling it "wildly popular" I wanted to cringe - of course its popular, they are giving away money. If I had a clunker I'd be all over it too.

    Next up .... cash for clunker appliances:
  3. TGregg


    Thanks for pitching this softball. If true conservatives were in power, one might expect them to shut off the sewer lines draining the pockets of future taxpayers. However, they are not, nor can I imagine what party they could come from and still be able to control the WH and both houses. Certainly not the republicans. But I digress.

    The real reason they are closing this down is because the outflow is slowing. Which can only mean one thing - it's time for a new round of programs to fling money at! Yay! Bend over once again future generations! We got your number and we're punching it often! Announcing Cash for Appliances:

    EDIT: Dang, GTS beat me to it.
  4. Short-term decisions not considering the long-term harm. This government is just depressing.