Posts Tagged ‘Cars for Clunkers’

US car tra$h program to be boosted?

Friday, July 31, 2009

The US government Car Allowance Rebate System (CARS), or as its been nicknamed, Cars for Clunkers, has just lifted off, but it looks like it will be running for a lot shorter period than the posted November 1st deadline. The purpose of CARS is to “energize the economy, boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways,” through giving auto dealers the possibility to offer up to $4,500 discounts to people trading in an old car (which must be demolished) when buying  a new one. NPR (along with other news outlets) reports today that the program is running out of money. $1 billion is apparently small potatoes when everyone wants a hybrid. House Democrats now hope to add another $2 billion to keep this tra$hy car campaign up and running.

In Sweden, a program with similar ambitions existed up until recently, through which a $1,350 voucher was made available to those buying an “eco-car”, i.e. one of those supposedly less environmentally damaging ones. At the moment, it seems that instead of extending the program, buyers of eco-cars will be have their auto tax waived for the first five years.

Of course, the idea of eco-friendly cars is still more or less humbug. Further, scraping used cars produces a lot of metal trash (or rather, tra$h), along with lead, sulphuric acid and mercury, that needs to be taken care of. Whether this is included in the plans to energize the economy and boost the auto industry, I don’t know. Regardless,  I’d rather see another $2 billion invested in public transportation (starting with the horribly malfunctioning US railroad system).