Aftermarket Business is taking an extensive, detailed look at "Cash for Clunkers" legislative initiatives. Taking cars off the road and encouraging people to buy new vehicles instead of putting money into repairs is an industry concern. So where do the aftermarket organizations stand? What are the positives to the industry, and also the negatives? Our coverage will continue throughout the month of May.
The word clunker has taken center stage in the industry, as Congress looks for ways to prop up automakers and assuage fuel efficiency concerns. But the introduction of recent legislation has left some in the aftermarket questioning the rationale behind the early retirement of vehicles and the long-term ramifications will have on the marketplace. Keep reading.
Rep. Betty Sutton introduced H.R. 1550, the second of two Cash for Clunkers bills being considered. Read full text.
Environment, aftermarket expected casualties of CFC, AAIA contends
Despite aiming for environmental benefits and increased new vehicles sales to boost the American economy, current vehicle scrappage legislation — dubbed "Cash for Clunkers" — will fall short of its claims, argues on aftermarket association. Keep reading.
While standing around tables at a reception during the Automotive Service Association's (ASA) Annual Convention, conversation hopped around to a number of topics.
But the topic of Cash for Clunkers really piqued some interest. Most people asked, 'so where do you stand? How about you?' It worked its way around the tables or groups until everyone had shared their individual opinions. Keep reading.
"Cash for Clunkers" negatives
Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association, explains the organization's stance on "Cash for Clunkers" legislation and some of the detriment it could bring to the industry. Listen here.
SEMA opposes restrictions on CFC vouchers, scrappage programs SEMA supports a number of bills in Congress and initiatives undertaken by the Obama Administration to help consumers, automakers and dealerships with a program to stimulate new car sales.
SEMA supports a policy to continue restoring credit and financing for businesses and consumers. SEMA has also endorsed a proposal to allow consumers to deduct car loan interest payments on their federal taxes, which should produce another 300,00 or more sales. Keep reading.
Cash for Clunkers: minimal market impact, says BB&T It's the fear of "Cash for Clunkers" opponents that proposed vehicle scrappage programs would result in an influx of new vehicle sales, requiring fewer aftermarket parts and less service, but recent research points out the aftermarket impact would be neutral to modestly negative at best. Keep reading.
NADA supportive, but cautious Though they have not formally placed their support behind either of the front-running "Cash for Clunkers" bills, the National Automobile Dealers Association (NADA) agrees the idea behind the program will offer a much-needed boost to the automotive industry.
"It boosts auto sales. It can solve a lot of the problems we are now faced with. It will give a boost to communities," says Bailey Wood, NADA spokesman. "There is also an environmental benefit here. It takes older cars off the road, which are more polluting."
But despite its support, NADA does stipulate several principles its members agree should be included in the legislation, such as any voucher or rebate program being applicable to all manufacturers, not just U.S. auto makers, for example. The monetary incentive also needs to be high enough to actually encourage sales, Wood says. Keep reading.
