Automakers Praise "Cash For Clunkers” Passage in Senate

June 18, 2009 -- Washington, D.C. - The Alliance of Automobile Manufacturers (Alliance) praised the Senate for passage of the fleet modernization, or "Cash for Clunkers" legislation. The proposal will now go to President Obama where it is expected to be signed into law. The Department of Transportation has already started working on the program’s implementation and will be announcing more information soon.

"This legislation has been one of our top priorities. It will help restore consumer confidence in the economy by stimulating vehicle sales; while at the same time benefitting the environment by replacing older vehicles with cleaner and more fuel-efficient autos," said Alliance President and CEO Dave McCurdy. "Cash for clunkers will benefit everyone from the consumer looking for the extra incentive to purchase a new car, to the communities who will receive additional tax revenue from the sales of new vehicles."

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Around the world, consumers are already benefitting from similar programs, and the resulting economic stimulus has been significant. In January, Germany implemented a fleet modernization program. At the end of the first month of the program, sales in Germany were up 21% over 2008. Corresponding sales in the U.S. were down 41% for the same period. As of this writing, fleet modernization programs have been adopted in China, UK, Brazil, Spain, Austria, France, Italy, Portugal, Romania and Slovakia, and are under consideration in several others.

Details of the program including vehicle eligibility requirements will soon be found at www.cars.gov.

Source: Alliance of Automobile Manufacturers