LANSING – In the wake of news that funding for the federal government's "Cash for Clunkers" program may
have already run out, State Representative Jon Switalski (D-Warren) today called on the
U.S. Senate to follow the lead of the Congress in boosting funding for the program and extend it in order to support
Michigan's auto industry.
"The overwhelming response shows that 'Cash for Clunkers' is a very successful program that can create and protect Michigan jobs," Switalski said. "We have to do everything we can to support our domestic auto industry and workers. This investment is already paying off in hundreds of thousands of vehicle sales."
The initial $1 billion program – known as the Car Allowance Rebate System (CARS) – was designed to energize the economy, boost auto sales and put safer, cleaner vehicles on the nation's roadways. Passed by Congress in late June to help the auto industry and launched just a week ago, the program was scheduled to run until Nov. 1, or until money ran out. The success of the program has exceeded expectations and after just 4 days it's estimated that the funding has been exhausted.
The U.S. House voted today to increase funding for the program by an additional $2 billion. The U.S. Senate is scheduled to vote on the additional funding on Monday.
Under the "Cash for Clunkers" program, vouchers worth up to $4,500 are given to eligible consumers who trade in old vehicles and then buy or lease more fuel-efficient models. Dealers credit the amount of the voucher to customers and then get reimbursed by the government. However, in addition to the millions of dollars that have already been spent under the program, there is a large backlog of dealer reimbursement applications.
"This program will help Michigan create and protect local jobs and jumpstart our state's economy," Switalski said. "Michigan's autoworkers are making the best vehicles in the world and this program can help get our economy moving again. In addition, we must ensure that our local dealers are being reimbursed for the vouchers they have already accepted. I call on the U.S. Senate to keep this effective program going."