Cash for Clunkers?

Thanks AGAIN, Jay. You’re on a roll, even if others are giving you a hard time re: Dodd (not me). This story sounds similar to DTV conversion box coupon thingy in underestimating popularity, yes? But I remember earlier C for C stories (not from you) spelling out doom for program, it’s over, etc. Do you know if wrong stuff was leaked out, things overheard incorrectly, etc. that OTHER reporters messed up? Or did they just read data differently, such as Benny Hill’s classic misinterpretation of “What’s this thing called love?” vs. “What’s this thing called, love?” thx.

Question: Why is this program being made available for dealerships that sell cars made by foreign companies?

Normally I’d agree being pro-American and pro-GM (all my cars were GM, current one a Saturn). It gets tangled when Honda and Toyota have factories here using our labor and many of our parts. Still, let’s hope this program benefits US.

Because even if the vehicle is manufactured overseas, it is being sold here in America. That means American dealerships and employees are seeing some of that money.

“subsidize gas guzzlers like the Hummer”

Wait a minute, wasn’t there a minimum mpg requirement for the vehicle to be purchased? What am I misunderstanding here?

Yeah, I know all that. Still strikes me as odd, though, subsidizing the purchase of a vehicle and having part of the money leave the US, much less subsidizing the purchase of a non-domestic car in general.
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The foreign automakers don’t have the same obligations the domestic ones do – healthcare, legacy pension obligations, for starters – so the playing field wasn’t level to begin with.
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Now,the correct answer would be that this program is intended to be as much of an energy saver as it is a boost to auto sales…

I refer you to the CAP link. Seems the mileage standards are pretty low as long as the cars are 2009. In fact, I just got off the phone with Reid’s office, who tell me that they’re worried about being able to pass something next week because they have opposition from the right — McConnell et al — and opposition from the left. Feinstein wants to toughen the MPG standards.
JNS

As was pointed out in the Wonkroom link though. Simply trading a old car for a new one, improves mileage and emissions even if their EPA ratings are identical.

Please tell the high sheriffs that the link from “Cash for Clunkers” to the Time Magazine Subscription page is broken…

the money for the program is apparently not the only thing that’s exahusted….

I think it would have a more positive impact if the program scaled the amount of money received based on the difference in MPG ratings between the old vehicle and the new. IE, trade a 1998 Taurus in for a 2009 Taurus, and the cash is small, trade a Hummer in for a Prius and see more substantial savings.
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Now what happens to the cars that are being traded in? Are they removed and destroyed, or do they just end up on the used market?

While we are (loosely) on the topic of energy, check this out.

While I think Cash for Clunkers provides some much needed economic stimulus and environmental relief, what happens to the 250,000+ vehicles that are now destined for America’s trash heap? Do they suddenly become the (forgotten) sunk costs of doing business, a future crisis waiting to happen, or an opportunity for some innovative reuse?

-MC
http://www.scribd.com/moulicohen

In Japan, the subsidies are specific to hybrids. Thus, the Insight and Prius have in recent months become the top selling vehicles overall. I know I know, Japan is not America, but given that the pop. here is less than 1/2 of America’s, the fact that they’re selling more hybrids is still pretty stunning. It helps that gas prices are always high. Gas tax anyone?
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Jay’s TP link says, “The program is essentially economic stimulus for the auto industry, and could turn into a huge handout if the standards aren’t high.”
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Anyway, here’s a Times’ piece on hybrid madness here:
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http://www.nytimes.com/2009/08/02/automobiles/02hybrid.html

arbitrarystrin,

A friend just purchased a new vehicle under this program. He was told his old clunker would be crushed and sold as scrap metal. It was to begin with anyway. He was recently offered $200 for it. He got $4500 under the program.

Make pennies out of them, since the govt still won’t retire the coin.

Government spending created many jobs in the Great Depression, Hoover Dam for example. Some paint that as socialism, others as a wise public investment — found a cool site; Balkingpoints ; incredible satellite view of earth

This was not a well constructed program and it should not be re-funded without changes. If the policy objective is just handouts for dealers, it should not be extended at all.

Dave Kiley at Businessweek has some good ideas for improvement.

http://www.businessweek.com/autos/autobeat/archives/2009/07/how_to_rewrite.html

It’s amazing that so little attention is being paid to the immense hypocrisy associated with this story. Now we want to tout the bipartisan nature of the support for refunding a part of the stimulus program? How can any member of the media write even a sentence about this story without pointing to the fact that not a single House Republican voted for this wildly popular program. In fact they slapped each other on the back for giving the President a “big fat goose egg,” I believe that’s what Chairman Steele called it. Why Jay are you posting this blurb as if the GOP has no history with this program? I’ve just spent the last two weeks hearing endless stories about the “Crash-in Cambridge” and not one left out the reference to Obama’s reasonable, although impolitic, assessment of state stupidity. So why no reminder about the GOP opposition to the stimulus or the stunning hubris that it takes to put its name on any part of the stimulus because it works? Why can’t you call it like it is and let your readers know that you can see these emperors are butt naked and lying all the way to the polls?

I’m guessing government funding of subsidies only for the purchase of domestic cars might contravene various international trade commitments

Yeah, I know that’s kind of a one-way street, but sometimes it’s easier not to buy a trade dispute if it isn’t necessary.