SACRAMENTO, California - March 4, 2009 -  The California/Nevada/Arizona Automotive Wholesalers' Association (CAWA), the Automotive Aftermarket Industry Association (AAIA) and the Coalition for Auto Repair Equality (CARE) held a meeting with Senator Dianne Feinstein's District Representative to communicate the industry's strong opposition to Cash for Clunkers legislation recently introduced by Senator Feinstein.

Known as the Accelerated Retirement of Inefficient Vehicles Act of 2009, S. 247, would provide federal funds to car owners to trade in their older vehicles for vouchers that would be used to obtain newer, more fuel efficient vehicles.  Specifically, participants would receive a cash voucher between $1,500 and $4,500 if they purchase a more fuel-efficient new or used (MY 2004 or later) car above 25% of CAFE standards.  In addition, there is an option to use the voucher toward the purchase of mass-transit fares.

"There is no empirical evidence to support arguments that cash for clunker/scrappage programs have any environmental benefits nor that these programs guarantee that older cars are retired for either fuel efficiency or emissions reductions goals," stated Rodney K. Pierini, CAWA President & CEO.

The aftermarket has consistently opposed "Cash for Clunkers" programs because they remove vehicles from the road that could be more cost effectively repaired.  These programs also require the destruction of parts including engines and drive trains, thus reducing the availability of both used and remanufactured parts.  The industry supports a repair and retrofit alternative that would provide tax credits or vouchers to Americans to repair and retrofit their vehicles to bring them up to clean air standards, maximize or improve fuel economy and reduce emissions.

"A well maintained vehicle leads to lower tail pipe emissions and improves fuel economy," states Aaron Lowe, AAIA Vice President, Government Affairs.  "Providing consumers with incentives to maintain their vehicles, provides responsibility and ownership in the upkeep of their vehicles and is a win-win for consumers as prices for replacement parts remain cost effective and the environment benefits from a well and regularly maintained vehicle."
  
A version of S. 247 was considered as part of the economic stimulus package, but was withdrawn due to strong opposition from the aftermarket.  It is likely, however, that sponsors of the bill will attempt to include a "Cash for Clunker" program as part of another bill, more than likely energy legislation that will be considered perhaps this month.