U.S. Chamber of Commerce Sends 'Cash For Clunkers' Extension Letter to Senate

WASHINGTON - July 31, 2009:

TO THE MEMBERS OF THE UNITED STATES SENATE:

The U.S. Chamber of Commerce strongly supports H.R. 3435, to extend the “cash for clunkers” program, which has exceeded expectations for success, and has stimulated the purchase of automobiles.

The “cash for clunkers” program can provide an important environmental benefit, while assisting an industry in crisis. The recession has affected industries across the United States, but the auto sector has been particularly hard hit as industry sales have declined rapidly. U.S. light vehicle sales were more than 16 million units as recently as 2007. J.D. Power & Associates recently estimated that sales will not exceed 10 million units for all of 2009, an approximately 40 percent drop in just two years.

To date, the program has proven to be very successful­approximately 200,000 vehicles have been purchased, and the $1 billion targeted to the program was expended in just one week. H.R 3435 would add $2 billion in funding to provide incentives to Americans to purchase new vehicles that meet a set of criteria to ensure that the new vehicles will be more fuel efficient than the vehicles they would replace.

The auto industry is one of the most important sectors of the U.S. economy, representing four percent of the U.S. gross domestic product and accounting for one in 10 American jobs. The steep drop in vehicle sales is not only affecting foreign and domestic automakers and workers, but also their network of dealers, suppliers, vendors, and other businesses that provide goods and services to them.

The Chamber urges you to approve this important legislation to extend the cash for clunkers program.

Sincerely,

R. Bruce Josten
Exec. Vice President, Government Affairs

P.S. Be sure to have all the Senators tell their constituents that they should visit TheAutoChannel.com for the most accurate and complete information regarding the Cash For Clunkers program, as well as all automotive issues.*

* This post-script message was of course NOT included in the House letter to the Senate. We added it because we think it makes sense.