U.S. auto "clunker" Program Suspended

[blue2fire]

http://www.reuters.com/article/ousiv...56U0GR20090731

WASHINGTON (Reuters) - The U.S. government's $1 billion "cash for clunkers" auto sales incentive program reached its funding limit unexpectedly after an avalanche of business exhausted its funds, an Obama administration official said late Thursday.
Auto dealers began offering government-backed rebates in early July of up to $4,500 to consumers who traded-in their gas-guzzlers for more fuel-efficient vehicles.


But the Transportation Department will need additional cash after rebates for nearly 250,000 vehicles jammed the pipeline nationwide.
The White House was working with Congress to try to extend funding as lawmakers prepared to leave town for the month of August, according to the official who was not authorized to speak for attribution.


The program was part of a congressional effort to revive slumping U.S. sales and further help domestic automakers, especially General Motors Corp and Chrysler Group that briefly went bankrupt.


Sales unexpectedly spiked this week after the government began logging transactions and approving rebates that indicated consumers were opting for vehicles that get significantly better gas mileage than the models they were trading in.


The end of the month is usually the busiest time for auto dealers and automakers that have matched the government benefit.


Initially, congressional and industry officials signaled that the program was going to be suspended late Thursday or early Friday as funding ran out.


The administration opted to keep the program in place while it sought new money. It was not clear where the administration would find additional funding in a short period of time.


"We hope there's a will and a way to keep the program going a bit longer," General Motors said in a statement. "Any doubt that the program would jump-start auto sales is completely erased."
An estimated 16,000 dealers were eligible for the program and each would have to sell more than a dozen vehicles at the maximum rebate to reach the government's funding limit, according to the National Automobile Dealers Association.


U.S. Senators Dianne Feinstein of California and Susan Collins of Maine said any extension of the incentive must require greater fuel efficiency and higher reductions of auto emissions.


Congress wrestled with both issues when it established the current incentive to give U.S. manufacturers a better chance of qualifying for the program.


U.S. auto manufacturers are scheduled to report their July sales next week.

[JB135i]

And some people want the Obama government to take over health care LOLOLOLOL.

Cash for clunkers crashes, a program that couldn't be much easier in concept.

Health care is 1/6th (some say 1/7th) of the entire US economy. Imagine the horror if the government gets ahold of that.

[EmPower]

Originally Posted by JB135i

And some people want the Obama government to take over health care LOLOLOLOL.

Cash for clunkers crashes, a program that couldn't be much easier in concept.

Health care is 1/6th (some say 1/7th) of the entire US economy. Imagine the horror if the government gets ahold of that.

Damage control can never be easy... GWB has destroyed this country... his incessant love for war has torn apart any semblance of hope for the future.

At least the Obama administration is trying to do the right thing. Its not going to be easy and mistakes will be made, but personal vendettas will not be a part of the agenda, and in all honesty, I would trust this country in the hands of someone with a brain rather than a person with an IQ of a gerbil

[TunedM2C]

CNBC said this morning that the program has not been suspended.

[E82tt6]

From what I've heard, expansion of the program is being looked at, because apparently it's had a measureable impact.

[fdsasdasdf]

Originally Posted by JB135i

And some people want the Obama government to take over health care LOLOLOLOL.

Cash for clunkers crashes, a program that couldn't be much easier in concept.

Health care is 1/6th (some say 1/7th) of the entire US economy. Imagine the horror if the government gets ahold of that.

Semi-off topic:

http://www.ibtimes.com/articles/2009...anscript_2.htm

Start where he says "first of all" to understand what the healthcare reform will be.

[imported_mega]

they are gonna spend 2 more billion of taxpayer money on it, at least that's the rumor

that's how the gov works, get something in, and when it runs out you it's far easier to add money to it

[TK-421]

I never understood it. You're trading in an old clunker just to get a new one.

[imported_mega]

what part dont you understand?

You have a beater car worth, say 1500 $, you trade it in and get 4500 $ for a new car, it can only be used for a new car

there's a bunch of bmw's that got traded in, there's some video's on youtube of the engines being blown because they were part of the cash for clunkers program

[TK-421]

Originally Posted by imported_mega

what part dont you understand?

You have a beater car worth, say 1500 $, you trade it in and get 4500 $ for a new car, it can only be used for a new car

there's a bunch of bmw's that got traded in, there's some video's on youtube of the engines being blown because they were part of the cash for clunkers program

I guess I was misinformed. A dealer I went to told me the incentive was for American cars only. Based on that info, I was saying that the new car you get (American) would still be a clunker. Needless to say I won't be buying from them again.

[imported_mega]

it's any brand trade in for any brand of new car, the dealer has to participate in the program, most all did

[200Duece]

the math I saw was 22,500(cars) x $4500 = 101,250,000

isn't there 1 Billion available? where did the other 800 million go?

[imported_mega]

huge backlog, dealers with 60 trades and only have been able to get 3 entered in the government red tape program

[vash_241987]

I wonder how many people went with a new GM when they traded in their clunker vs. going to toyota/honda. Oh and BTW the Gov. will supposedly crush the clunkers, and make sure the engine is in non-workable condition, but it was also mention that they may sell the engines to china

[vash_241987]

Originally Posted by 200Duece

the math I saw was 22,500(cars) x $4500 = 101,250,000

isn't there 1 Billion available? where did the other 800 million go?

Yes there is...if all americans unite....with their hard earned paychecks, we can afford this change for the good of the country.........don't worry our fearless leader B.O. will repay you with only one choice for health care.

[200Duece]

can't wait

[Cerezo]

It's 250,000 and 18MPG or worse only not just any used car.

http://www.msnbc.msn.com/id/32128812/ns/business-autos/

Also says 2b is approved.

http://www.msnbc.msn.com/id/32228179/ns/business-autos

[flyinb501]

Originally Posted by JB135i

And some people want the Obama government to take over health care LOLOLOLOL.

Cash for clunkers crashes, a program that couldn't be much easier in concept.

Health care is 1/6th (some say 1/7th) of the entire US economy. Imagine the horror if the government gets ahold of that.

No doubt! The program was supposed to last till November, and ran out of money in 4 days. Now they want another $2 billion. What a joke! Basically it's just another bail out for Barack Obama motors because that's where all the money is coming back to.