ARA Successful to Secure Additional Cash for Clunkers Processing Time for Automotive Recyclers

NHTSA Approves 90 Day Crushing Extension -- a Win-Win for Consumers

MANASSAS, Va., Feb. 2 -- The National Highway and Traffic Safety Administration (NHTSA) has issued its final ruling which allows automotive recyclers an additional 90 days, for a total of 270 days, to crush or shred vehicles traded in under the Consumer Assistance to Recycle and Save (CARS) program. The final rule amends regulations implementing the CARS program - also known as "Cash for Clunkers" - initially published on July 29, 2009.

The Automotive Recyclers Association's (ARA) Executive Vice President Michael E. Wilson comments, "The additional processing time allows the Cash for Clunkers program stimulus effects to continue. By providing the consumer increased access to economical 'green' recycled automotive parts harvested from vehicles that were traded in under the program, consumers will benefit along with the businesses that sell those parts. Without this extension, some cars with quality parts might have been crushed in order to meet the original deadline."

The NHTSA final rule states that "the additional time will allow the public to benefit from the availability of lower cost used vehicle parts from vehicles traded in under the (CARS) program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding." Wilson adds, "We are appreciative of the Agency's understanding and acknowledgement of the many consumer benefits that the professional automotive recycling industry provides."

NHTSA initiated an official agency proposed rulemaking on November 27, 2009, that lasted 20 days to allow for public comments. (ARA), along with many (ARA) members, offered the Agency overwhelming support for the extension. NHTSA's actions are a direct result of these concerted efforts seeking to alleviate the challenges that were created by the extension of the original program to the consumer without addressing the backend vehicle processing time allowances.

By extending the consumer program, three times as many cars were traded in than were expected, almost 700,000 in all, but the disposal period remained the same. This ruling now offers automotive recyclers more time to process the cars, which in turn keeps more recycled parts available to the consumer, as well. The NHTSA final rule states that "the additional time will allow the public to benefit from the availability of lower cost used vehicle parts from vehicles traded in under the (CARS) program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding." Wilson adds, "We are very pleased with NHTSA's final ruling, and their willingness to consider our position in this matter."

Established in 1943, the Automotive Recyclers Association represents an industry dedicated to the efficient removal and reuse of "green" automotive parts, and the proper recycling of inoperable motor vehicles. (ARA) represents over 4,500 auto recycling facilities in the United States and fourteen other countries around the world. With programs such as the Certified Automotive Recycler Program (CAR) and other partnerships, (ARA) members continue to provide consumers with quality, low cost alternatives for vehicle replacement parts, while preserving our environment for a "greener" tomorrow.

To learn more about the Association, visit ARA's home page at www.a-r-a.org