Alliance of Automotive Manufacturers: Cash for Clunkers Rules!

The Alliance of Automotive Manufacturers has declared the $1 billion-and-counting Cash for Clunkers (a.k.a. C.A.R.S.) program a success. The org doesn’t want any prospect of limited government (the “where do you draw the line” argument) to derail the four-wheeled gravy train. In fact, the Alliance wants the feds to re-up like a coke addict wants that third line. No surprise there. Still, there’s some interesting new info in their latest press release:

Automakers and automobile dealers have seen a significant increase in vehicle sales and dealership foot traffic since the launch of the CARS or “Cash for Clunkers” program. This increase in vehicle sales is generating important tax revenue for communities where in some cases roughly one-quarter of sales tax revenue is dependent on receipts from auto sales. And while the program has provided much need economic stimulus to the auto industry, it has also yielded significant energy security and environmental benefits.

Amongst Alliance members Ford reports a 9 MPG increase from trade-in vehicle to new vehicle purchase; GM reports a 54 percent increase in small car sales since the CARS program was launched; 57 percent of Mazdas sold so far under the program were highly fuel-efficient Mazda 3’s; 78 percent of Toyota’s CARS sales volume consists of the following vehicles — Corolla, Prius, Camry, RAV 4 and Tacoma, which average a combined 30 MPG; and Volkswagen reports over 60 percent of its CARS sales are clean diesel Jetta TDI’s which get an EPA combined 34 MPGs.

That equates to an approximate 500,000 ton reduction in carbon dioxide emissions greatly enhancing energy security and reducing greenhouse gases.

We strongly urge the Senate to approve $2 billion in additional funding for the CARS program so that American consumers can continue to take advantage of these benefits.