Cash for Clunkers is still a bad idea for the industry

摘要

The automotive aftermarket has struggled for a number of years with government-sponsored vehicle retirement programs commonly known as Cash for Clunkers. These programs offer cash to consumers to trade in old vehicles for more fuel-efficient ones. A few states have long-established programs including California, Colorado, Delaware, Illinois, Texas and Virginia. Countries such as Canada and Germany have also had programs. The aftermarket has opposed these state programs with limited success. The state programs pale in comparison to what was established by the federal government during the 2008 recession; a program that provided up to $4,500 per vehicle destroyed. In President Obama's words in July 2009, "the CARS (Consumer Assistance to Recycle and Save) program was an effort to boost the economy and sell more fuel-efficient vehicles." U.S. Secretary of Transportation Ray LaHood stated in the summer of 2009 that the CARS program was a "win-win for our economy and our environment."