Congress Discusses 'Cash for Clunkers' Program; ASA Calls for Repair Option - aftermarketNews

Congress Discusses ‘Cash for Clunkers’ Program; ASA Calls for Repair Option

The 'Cash for Clunkers' policy has been discussed during testimony before the House of Representatives Committee on Financial Services, included in draft climate legislation by the House Committee on Energy and Commerce, and proposed by General Motors Corp. in its business plan submitted to Congress.

WASHINGTON, D.C. – With Congress returning to Capitol Hill to consider economic stimulus legislation for the automotive industry – and returning after the holidays to discuss a broader stimulus package – the concept of a fleet modernization program is receiving more attention from policymakers. Princeton University’s Dr. Alan Blinder, in a New York Times article published earlier in 2008, referred to this policy option as “Cash for Clunkers” – government payments to remove older, less-fuel-efficient or high-polluting vehicles from America’s highways.

The “Cash for Clunkers” policy has been discussed during testimony before the House of Representatives Committee on Financial Services, included in draft climate legislation by the House Committee on Energy and Commerce, and proposed by General Motors Corp. in its business plan submitted to Congress.

In a letter to policymakers, the Automotive Service Association (ASA) indicated its support for a fleet modernization program that includes the following key points:
•    Any fleet modernization program must include a vehicle repair option for consumers.
•    The program should be administered by the states.
•    Vehicle participation should be tied to emissions and improving air quality.
•    Repair cost allowances should be sufficient to address emissions repairs.
           
Both California and Texas have state fleet modernization programs that could serve as models for other states. ASA is encouraging Congress and states to review the Texas and California programs to determine how best to structure such a program. If a new federal law is passed with funds for fleet modernization programs, states would be well-served to establish advisory committees made up of consumers, independent repairers and new car dealers to determine the most effective program, said ASA.

You May Also Like

MEMA Issues Statement on Tax Relief for Working Families Act

This measure contains the restoration of one year deductibility of research and development expenses, a key legislative priority for the association.

MEMA, The Vehicle Suppliers Association issued a statement regarding the House overwhelmingly passed on January 31, the bipartisan, “Tax Relief for American Families and Workers Act.” This measure contains the restoration of one year deductibility of research and development expenses, a key legislative priority for MEMA, The Vehicle Suppliers Association, said.

SEMA Urges Members to Support Tax Relief Bill

The Tax Relief for American Families and Workers Act of 2024 benefits specialty automotive aftermarket businesses, according to SEMA.

SEMA Action Network
ASA Endorses Bipartisan Tax Framework

The Automotive Service Association says the legislation is beneficial for independent automotive repair businesses.

Industry Partners Urge Congress to Pass R&D Deductibility Fix

“Congress must restore this tax provision to enhance U.S. competitiveness, job creation and innovation as soon as possible,” said Ann Wilson, MEMA’s executive vice president of government affairs.

Legislators Challenge Vehicle Data Access ‘Double Standard’

Rep. Marie Gluesenkamp Pérez joined other legislators in sending a letter to NHTSA about proposed guidance for implementing the Massachusetts Right to Repair law.

Other Posts

Valeo to Develop Digital Twin for ADAS Simulation

This collaboration is designed to speed up the development of ADAS features by automotive OEMs.

Valeo-digital-twin-adas
House Passes Bill to Stop EPA Emissions Mandate

The U.S. House passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support.

Opposition Grows for California’s Mandate Banning New Gas-Powered Vehicle Sales
U.S. House Schedules Vote to Stop EPA Emissions Mandate

The SEMA-supported bill would prohibit the EPA from finalizing federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32.

emissions
Section 301 Tariffs & Circumvention: A Closer Look

There’s buzz suggesting that these tariffs are likely here to stay, possibly with even steeper charges on specific items.