CARS success continues

Since I unveiled the CARS program last week, over $700 million has already gone out the door. As a result, today almost 200,000 new fuel-efficient automobiles averaging 25 miles per gallon are on the road instead of gas-guzzling trucks and SUVs. At the same time, our CARS trade-in program has been a lifeline to the American auto industry by boosting the manufacturers, keeping dealerships in business, saving the workers’ jobs, and helping Americans buy cars.

There’s no doubt in my mind that this program has been a wild success, but you don’t have to take it from me. Here’s what the news is saying about CARS across the country:

Columbus Dispatch, 'Clunkers' give auto sales needed jolt: "Cash for Clunkers" is beginning to seem like the defibrillator that jolted the auto industry back to life.”

Los Angeles Times, More Cash For Clunkers: “The program is boosting economic activity at a time when consumer confidence has been slipping again, threatening to slow the economy's nascent recovery.”

Houston Chronicle, ‘Cash for clunkers' giving a jump-start to economy:
“Cash for clunkers could be the least glamorous stimulus program ever devised — and among the best designed. It is temporary (lasts until Nov. 1 or when the money is gone), targeted (helps Detroit and, with it, the industrial heartland) and timely (the stampede to the showrooms was immediate). Extra bonus: By helping people trade gas guzzlers in for more fuel-efficient vehicles, the program helps the environment.”

Detroit News, Dealers, drivers, makers cashing in on clunkers: “The Obama administration said the "cash for clunkers" program has been an enormous success, boosting domestic automakers as momentum gains to persuade the Senate to approve $2 billion in additional funding.”

Philadelphia Inquirer, Keep It Rolling: “Cash for Clunkers has worked so well that the government burned through $1 billion from the federal stimulus act designated for the program in just the first week. The money had been expected to last as long as Nov. 1.”

Baltimore Sun, More Cash For Clunkers:
“By contrast, 100 percent of the cash for clunkers money is going directly into the economy, and that's not its only benefit. It supports an industry that we've already invested billions in; it improves the environment by getting inefficient cars off the road (the clunkers must be sold for scrap, with their engines and transmissions rendered inoperable); it helps consumers' long-term finances by getting them into cars that will cost them less for gas; and it does all of that almost immediately with little bureaucracy.”

Newsday: Let's extend cash-for-clunkers: “The holy grail of economic stimulus is to quickly get money into the hands of people who will immediately spend it. Judged by that standard, cash-for-clunkers is a runaway success.”

Comments

[MW]

Yes, it has been very successful. There are plenty of fellows driving these cars into other cars at salvage yards..lots of fun

[DAVID DICKSON]

I thought that we learned from our mortgage crisis that increased debt is expensive. This program just "enourages" Americans to add to their debt. Has anyone calculated just how many of these cars will end up being repossessed? Who is going to pay for that? Let's see, $3000 for a $20,000 car that will not be paid off, times how many cars...that's another big number.

[Enriuqe Pineda]

As long as the American people understand where the money for this program is coming from, and how it will later be paid for, I suppose no one can really complain.

[Michael E. Bailey]

Cash for Clunkers is working here in Orange County, California, too. Lots of people are talking about it and car dealer show rooms are full. That is great news to because every new car sold brings in sales tax money to Orange County, the City of Mission Viejo, and the Orange County Transportation Authority. For OCTA that means the cuts to bus service may not be as bad; and Measure M sales tax money is also going toward a major rail expansion program that will see Metrolink trains running every 15 to 30 minutes all day long between Mission Viejo and Fullerton. Rail will be the main backbone transportation system for the county beginning early to middle next year and busses will support Metrolink bringing people from home to train station and from train station to job site. Measure M sales tax money is making this possible and Cash for Clunkers is bringing in a lot of new unplanned for sales tax money. Thank you and best wishes, Michael E. Bailey.

[Daniel]

Isn't it a little disingenuous to call a 25mpg car "fuel efficient" when there are cars obtaining nearly twice that number on the road?

[Carmen Kent]

Isn't this program about saving gas, lowering polution and getting away from our dependence on oil? Then why is it that my '98 Pontiac Grand Am, auto, 4 cylinder is only 1 mile-per-gallon higher than the CARS program allows, while a huge truck from '05, only has to SAVE 2-miles-per-gallon in order to get the $4500? I'm want to go to a Toyota Yaris which is a minimum of 13-miles-per gallon OVER what my current car gets per the program. I actually think that my numbers are more like 15-20 miles per gallon SAVINGS since I drive only in the city - no highway! I don't know, but my 13 mpg over the truck's 2 mpg seems like it deserves the $4500 a lot more. And yet, my 12 year old car is not approved for the program. And I am not happy. this program nees to be re-thought.

[Nina]

I learned in a Contemporary Environmental Issues class that trading in your gas guzzler for a Hybrid has an overall negative environmental impact. It’s better for the environment to keep the car you have because producing and transporting a new car has more of a negative environmental impact than the positive impact of driving even a Hybrid will ever have. Cash For Clunkers might provide a short term boost to the economy but if my professor was correct it is poor environmental policy. The program should have included Bicycles For Clunkers… Bus Passes For Clunkers… Scooters For Clunkers… How Can We Possibly Get You Out Of Your Car For Clunkers!...

[stanton allaben]

Where is the documentation that proves the people trading in gas guzzlers for the cash for clunkers program are actually buying fuel efficient cars??? How do we know that they aren't just buying new gas guzzlers? Post the facts Mr. LaHood.

[Sebastian]

Surely the whole point and measure of the success should be in the environmental benefits, not in how much it helps the economy. It should also be noted that the most bought cars from this program have all been Japanese, so it could be seen as helping their economy more than the US's.

[Cheap cars in Houston]

I specially wish to Mr. Barack Obama for successful car programme and better economy.

Charlie Wilson