The government is suspending the explosively popular "cash for clunkers" program fearing it would go broke before it could parcel out what it still owes dealers for a huge backlog of sales.
"Obviously the program has been an immense success in stimulating automotive sales," Wood said.
"The thing has exploded. It has exceeded everyone's expectations," said Miller, who was involved in writing the original legislation, known as CARS, for Car Allowance Rebate System. "Throughout our history, it has been auto sales that have pulled us out of recession. People are more likely to buy cars than houses. Not to be too Pollyannaish, but we're gettin' our mojo back. This could be the pivot" that begins an economic recovery.
The White House said Thursday night that "dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored.
"We're in a full-court press trying to get more cash for 'cash-for-clunkers'," Miller told USA TODAY Thursday night pointing out she wanted $4 billion for the program, not the $1 billion that was appropriated.
Rep. Betty Sutton, D-Ohio, also a co-sponsor of CARS who wanted $4 billion, got the news from DOT Secretary Ray LaHood Thursday night, according to Sutton's chief of staff Nichole Francis Reynolds. Reynolds said, "The program's spent $150 million and has another $800 million to $850 million in (pending) obligations This is one of those programs you can really see working." She says CARS has "overwhelming support" and Sutton was pressing to free more money to continue the program.
For more than a few months now Americans have been saying the Government should forget about giving money to big business and instead give it to people who will use the money to buy cars. Maybe the people were right.
http://www.usatoday.com/money/autos/2009-07-30-cash-for-clunkers-program-suspended_N.htm
