Congress to Consider 'Cash for Clunkers' Plan Today

Washington DC June 9, 2009; The AIADA newsletter reported that consumers could receive rebates of up to $4,500 for turning in their gas-guzzling cars and trucks for more fuel-efficient vehicles under a House proposal.

The Detroit Free Press reports that the House proposal set for a floor vote Tuesday is aimed at stimulating car sales during a bleak period for the auto industry while increasing the nation's overall fuel efficiency. GM and Chrysler have received billions of dollars in government aid, but the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34 percent lower than a year ago.

The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing environmental benefits.

While imperfect, AIADA recognizes that the Sutton Scrappage Bill, H.R. 2640, will provide a much needed boost to America's auto retailing sector. If this bill is passed, dealers can look forward to a true stimulus program that will incentivize customers to buy even as it helps the environment.

International nameplate dealers can view this legislation as a big step toward an industry-wide recovery.