Statement of Senator Carl Levin on Proposal for a "Cash for Clunkers" Program

June 2, 2009 -- WASHINGTON – Senator Carl Levin, D-Mich., said the following today regarding the proposal for a fleet modernization or “cash for clunkers” program:

“I am hopeful that the Senate will soon act on the proposal put forth by Senator Stabenow, myself and others for a so-called ‘fleet modernization’ or ‘cash for clunkers’ program that will provide a voucher to those turning in their older less fuel efficient vehicles. Such a program will encourage people to purchase new more fuel efficient vehicles and offers potential both to stimulate the sale of new vehicles by U.S. companies and to reduce overall fuel consumption and greenhouse gas emissions.

“The new vehicle sales of all auto companies in the world continue to suffer as we weather this unprecedented downturn in the U.S. economy. Since the end of last year, we have seen a decrease in sales of 30 to 40 percent over the same period a year ago. It is imperative that we turn around this sales decline, and one way to help is with incentive programs. The evidence is there that this type of program will work – Germany has seen an increase in new vehicle sales of 25 to 40 percent since its program was implemented earlier this year. The U.S. needs to take similar action to stimulate our auto sales.”

Source: Senator Carl Levin