Bethesda, Maryland – A “Cash for Clunkers” amendment in the U.S. stimulus package, which would have provided federal funds for car owners to scrap older vehicles in favour of purchasing newer, more fuel-efficient models, has been withdrawn from the bill.
The measure was opposed by several groups, including the Automotive Aftermarket Industry Association (AAIA) and the Specialty Equipment Market Association (SEMA).
“We are thrilled that this amendment was withdrawn from the stimulus package,” said Kathleen Schmatz, president and CEO of AAIA. “This amendment was full of potholes from the beginning, and once the senators were informed of all the unintended harmful consequences that would have resulted from inclusion of this amendment in the bill, they made a very wise and informed decision to remove this amendment from the stimulus package.”
Opponents of the measure argued that the amount paid to owners turning in vehicles would be insufficient to spur new-car sales, that many older vehicles are rarely driven and have a minimal impact on overall fuel economy and emissions, and that it would affect aftermarket companies that rely on sales of replacement parts.