Driving Force newsletter - July 2009
Posted: 30 Jun 2009, 16:53Saved From The Scrapyard
Hobbyist Protections Added to Lessen Impact of Cash for Clunkers Program
It seemed inevitable. In response to the economic tsunami, nations around the world have enacted cash for clunkers programs to help jump-start new car sales. The United States has now joined the crowd. But, there is good news. The Specialty Equipment Market Association (SEMA) and the SEMA Action Network (SAN) persuaded Congress to spare cars 25-years and older from the scrappage heap and expand parts recycling opportunities under the new law.
Congress passed the controversial program in June. Consumers who voluntarily participate, will receive a voucher to help buy a new car in exchange for scrapping a less fuel-efficient vehicle. The SAN was able to ease the program’s effects by convincing lawmakers to include a requirement that the trade-in vehicle be a model year 1984 or newer vehicle. This provision will help safeguard older vehicles that may possess ‘historic or aesthetic value’ and are irreplaceable to hobbyists as a source of restoration parts. The measure also allows all parts to be recycled except the engine. Lawmakers were convinced to permit the drive train to be recycled if the transmission, drive shaft or rear end are sold as separate parts.
The cash for clunkers war had two battles. The first ended in mid-February when President Obama signed a clunker-free stimulus bill into law. For the previous two months, thousands of SAN members responded in force by deluging lawmakers with e-mails, faxes and phone calls in opposition to a scrappage program.
The second battle began on March 30 when President Obama embraced the idea as part of a financial aid package to help a struggling auto industry. The signal was sent—when, and not if a scrappage program would be initiated.
The SAN then focused its efforts on lessening the impact of the program on the hobbyist community.
“SEMA and the SAN are disappointed that Congress ignored evidence that vehicle scrappage programs will not achieve claimed environmental benefits,” said Steve McDonald, SEMA’s Vice President of Government Affairs. “However, we are pleased that lawmakers agreed not to include the older cars and parts that help drive the passions of many in the automotive hobbyist community.”
Under the program, consumers who agree to scrap a trade-in car that gets 18 miles per gallon or less (15 mpg or less for heavy pick-ups and vans) will receive a voucher to buy a qualifying new car. The voucher will range from $3,500 to $4,500 based on the new car’s fuel efficiency. The program primarily targets SUVs and pickups since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement.
The car buyer will receive a $3,500 voucher if they buy a new passenger car that was rated at 4 mpg higher than the older vehicle, or a new pickup truck/SUV that was at least 2 mpg higher than the old truck. They will receive a $4,500 voucher if the passenger car was at least 10 mpg higher and the truck/SUV was at least 5 mpg higher.
Lawmakers want the program to last one year but have only set aside $1 billion to fund car purchases made from July 1-Nov. 1, 2009. They will seek another $3 billion later this summer to fund the program into 2010.
“It took countless meetings with lawmakers and their staff in order to secure the 25-year exemption and recycling provisions,” said SEMA Director of Regulatory Affairs Stuart Gosswein. “While it proved impossible to kill the scrappage program, lawmakers were keenly aware of the SAN’s opposition to the program and wanted to remove any unintended consequences to the hobbyist community. Your voices were heard.”
entire July Newsletter
Hobbyist Protections Added to Lessen Impact of Cash for Clunkers Program
It seemed inevitable. In response to the economic tsunami, nations around the world have enacted cash for clunkers programs to help jump-start new car sales. The United States has now joined the crowd. But, there is good news. The Specialty Equipment Market Association (SEMA) and the SEMA Action Network (SAN) persuaded Congress to spare cars 25-years and older from the scrappage heap and expand parts recycling opportunities under the new law.
Congress passed the controversial program in June. Consumers who voluntarily participate, will receive a voucher to help buy a new car in exchange for scrapping a less fuel-efficient vehicle. The SAN was able to ease the program’s effects by convincing lawmakers to include a requirement that the trade-in vehicle be a model year 1984 or newer vehicle. This provision will help safeguard older vehicles that may possess ‘historic or aesthetic value’ and are irreplaceable to hobbyists as a source of restoration parts. The measure also allows all parts to be recycled except the engine. Lawmakers were convinced to permit the drive train to be recycled if the transmission, drive shaft or rear end are sold as separate parts.
The cash for clunkers war had two battles. The first ended in mid-February when President Obama signed a clunker-free stimulus bill into law. For the previous two months, thousands of SAN members responded in force by deluging lawmakers with e-mails, faxes and phone calls in opposition to a scrappage program.
The second battle began on March 30 when President Obama embraced the idea as part of a financial aid package to help a struggling auto industry. The signal was sent—when, and not if a scrappage program would be initiated.
The SAN then focused its efforts on lessening the impact of the program on the hobbyist community.
“SEMA and the SAN are disappointed that Congress ignored evidence that vehicle scrappage programs will not achieve claimed environmental benefits,” said Steve McDonald, SEMA’s Vice President of Government Affairs. “However, we are pleased that lawmakers agreed not to include the older cars and parts that help drive the passions of many in the automotive hobbyist community.”
Under the program, consumers who agree to scrap a trade-in car that gets 18 miles per gallon or less (15 mpg or less for heavy pick-ups and vans) will receive a voucher to buy a qualifying new car. The voucher will range from $3,500 to $4,500 based on the new car’s fuel efficiency. The program primarily targets SUVs and pickups since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement.
The car buyer will receive a $3,500 voucher if they buy a new passenger car that was rated at 4 mpg higher than the older vehicle, or a new pickup truck/SUV that was at least 2 mpg higher than the old truck. They will receive a $4,500 voucher if the passenger car was at least 10 mpg higher and the truck/SUV was at least 5 mpg higher.
Lawmakers want the program to last one year but have only set aside $1 billion to fund car purchases made from July 1-Nov. 1, 2009. They will seek another $3 billion later this summer to fund the program into 2010.
“It took countless meetings with lawmakers and their staff in order to secure the 25-year exemption and recycling provisions,” said SEMA Director of Regulatory Affairs Stuart Gosswein. “While it proved impossible to kill the scrappage program, lawmakers were keenly aware of the SAN’s opposition to the program and wanted to remove any unintended consequences to the hobbyist community. Your voices were heard.”
entire July Newsletter