SEMA Crushes Vehicle Scrappage Program; Highway Bill Excludes Funds to Flatten Cars

WASHINGTON--Aug. 3, 2005--SEMA, the Specialty Equipment Market Association, has once again convinced lawmakers to prohibit the use of federal monies to fund motor vehicle scrappage programs. The latest victory came as Congress completed work on legislation to fund highway construction and public transportation through fiscal 2009. President Bush is expected to sign the $286.5 billion bill into law.

Two years ago, the U.S. Department of Transportation proposed funding state and local scrappage programs through the Congestion Mitigation and Air Quality Improvement Program (CMAQ), which pays for things like bike paths, carpool lanes, and commuter parking lots. SEMA worked with a coalition of other aftermarket trade associations urging Congress not to authorize the proposal.

"Lawmakers listened to our message," noted Steve McDonald, SEMA's vice president for government affairs. "SEMA briefed leaders in the U.S. Senate and House of Representatives on the fact that scrappage programs are not a cost-effective method to reduce motor vehicle emissions and unnecessarily remove collector vehicles and parts from the marketplace. The leaders pledged not to include vehicle scrappage funding in the highway bill, and they lived up to that pledge."

Scrappage programs accelerate natural vehicle retirement by allowing for the purchase of older cars from owners which are then typically crushed into blocks of scrap metal. Most scrappage programs are based on the trading of emissions credits and began as an incentive to allow "smokestack" industries to determine the most cost-effective means of reducing pollution. SEMA opposes scrappage proposals. Where proposals cannot be defeated, SEMA has sought to amend them to protect collector vehicles and parts-cars, focus on verified gross polluters, use measured emission values, allow parts recycling, and include repair/upgrade alternatives.

"SEMA will oppose any future efforts to authorize vehicle scrappage programs, be they on the state or national levels," said McDonald. "We believe that all mobile source emissions reduction programs should be carefully developed to achieve real environmental benefits while keeping the impact on businesses and the public as low as possible. A scrappage program that indiscriminately targets older vehicles, especially well-maintained and infrequently driven collector vehicles, does not meet that criteria."

SEMA represents the $31 billion specialty automotive industry. Founded in 1963, the trade association has approximately 6,466 member companies. It is the authoritative source of research data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765-3914; call 909-396-0289; or visit Enjoy the drive.com.