'Cash for Clunkers' Could Be Resurrected this Spring - BodyShop Business
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‘Cash for Clunkers’ Could Be Resurrected this Spring

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Although funding for the “Cash for Clunkers” program was removed from
the Economic Stimulus bill passed by Congress last week, congressional
supporters have vowed to include the provision in another piece of
legislation, possibly an energy bill, slated for debate this spring.

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The Automotive Aftermarket Industry Association (AAIA) said it will continue to oppose the legislation.

“The aftermarket strongly opposes the use of ‘Cash for Clunkers’
programs, which threaten jobs in our industry by removing repair
opportunities for vehicles and raising the cost of used cars and
parts,” said Aaron Lowe, AAIA vice president, government affairs.
“While these programs look good on paper, they have never been shown to
be a cost effective means to improve fuel economy, reduce emissions or
spur new car sales.”

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However, National Auto Body Council (NABC) Executive Director Chuck
Sulkala said in an open letter to the industry that the program would
do a great deal to improve the collision repair industry (click HERE to read the letter in its entirety).

“We repair new vehicles, not ‘Clunkers.’ Our business will improve when
the average age of vehicles on the road gets younger, not older,”
Sulkala wrote. “Newer cars get repaired, older ones get totaled or
never fixed. If we expect any sort of turnaround in this, the collision
repair industry, then we need to help our customers get into newer
vehicles. A ‘Cash for Clunkers’ proposal absolutely does that. By
giving consumers a chance to get cash from the government for their old
car provided they buy a new more efficient new car, we are giving a
stimulus shot right into the heartland of America, our own local
community.”

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Sulkala added that by creating a demand for new vehicles, “Cash for
Clunkers” would also help auto manufacturers, lending institutions,
dealerships and insurers.

The AAIA has added the “Cash for Clunkers” issue to the agenda for the
Aftermarket Legislative Summit, scheduled for March 11-12 in
Washington, D.C. The group said it hopes to educate lawmakers about the
program’s potential pitfalls.

To register for the 2009 Aftermarket Legislative Summit, click HERE.

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