Thursday, August 20, 2009

Cash for Clunkers Exit Strategy

Well, that was fast! Less than three hours ago I filed the following post.

Now the White House has announced that Cash for Clunkers ends Monday.

Hope the dealers -- other than GM and Chrysler -- get reimbursed quickly.


A "Cash for Clunkers" update ...

With millions -- perhaps billions -- of outstanding unpaid claims from car dealerships, the Obama administration is now concocting its exit strategy from the CARS program.

Says CBS:
(CBS/AP) U.S. Transportation Secretary Ray LaHood announced Thursday that after a wildly successful run, the cash for clunkers program will come to a close on Monday, August 24th at 8 p.m. EDT.

"This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work," Secretary LaHood said. "At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles."

LaHood reiterated his pledge that dealers would be reimbursed for the incentives.

"We don't want to run out of money. And I want to be able to substantiate what I'm saying here. If you do a deal with us, you submit the paperwork, you will be paid," LaHood said.


"We want to make sure that dealers know when we're getting close" to running out of the money that was allocated for the program, LaHood told reporters Wednesday. LaHood said he recognized that "dealers are frustrated. They're going to get their money."

On Thursday, both Chrysler and General Motors said they would begin providing cash advances to dealers to help cover any cash shortfalls related to the program. The automakers said they would provide the advances for up to 30 days for dealers who have already completed a sale and they will be available as long as the program remains in effect.
Isn't it sweet to know that the two automotive giants owned by The People's Republic of Obama are coming up with dollars to help their dealers!

Wonder where that money is coming from?



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