Government to Crush newer cars with our tax dollars

SEMA is opposing an effort by some Washington lawmakers to include a national car crushing program in the upcoming economic stimulus package. Vehicles targeted for the scrap pile will likely include Chevy Blazers, Silverados, S-10s and Tahoes; Dodge Dakotas and Rams; Ford Explorers and F-Series; Jeep Cherokees and Wranglers; and any other SUV or truck that obtains less than 18 mpg.

Under the plan, the federal government would pay a premium for '99 and newer cars. Click here to oppose the legislation.

The so-called “Accelerated Retirement of Inefficient Vehicles Act” is "Cash for Clunkers" with a twist. Instead of focusing exclusively on old cars as is typical with scrappage programs, this bill will target any vehicle with lower fuel-economy ratings. Participants will receive a cash voucher to purchase a more fuel-efficient new car or used car (model year 2004 or later) or receive credit for the purchase of public transportation tickets.

Under the legislation, “fuel efficient” means at least 25% better mileage than the CAFE standard. It will be illegal to resell the scrapped vehicles. Bill sponsors want to destroy 4 million pickups and SUVs over the next four years.

The program will fail to achieve its goal of improving fuel efficiency and stimulating car sales, but will increase unemployment and the cost of used cars and parts. Here’s why:

Given the minimal $1,500–$4,500 voucher value, the program will lure rarely driven second and third vehicles that have minimal impact on overall fuel economy and air pollution. This is not a wise investment of tax dollars.
The program will reduce the number of vehicles available for low-income individuals and drive up the cost of the remaining vehicles and repair parts. This is a basic supply-and-demand reality.
The program will remove the opportunity to market specialty products that are designed exclusively for the targeted pickups and SUVs, including equipment that increases engine performance and fuel mileage. Congress will be enacting a program to eliminate jobs and reduce business revenues in the automotive aftermarket.
The idea that the trucks and SUVs must be scrapped in order to save energy is irrational. The program’s “carbon footprint” does not factor in the amount of energy and natural resources expended in manufacturing the existing car, spent scrapping it and manufacturing a replacement car.
The program fails to acknowledge driver needs, such as the ability to transport a family, tow a trailer or rely upon the performance, safety and utility characteristics associated with the larger vehicles. Instead, these vehicles will be destroyed.
There is no evidence that the program will achieve the goal of boosting new-car sales or increasing fuel mileage. Many states have considered scrappage programs in the past as a way to help clean the air or increase mpg, but abandoned the effort because they simply don’t work. The programs are not cost-effective and do not achieve verifiable fuel economy or air-quality benefits.
The program will hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country that depend on the used-car market. This industry provides thousands of American jobs and generates millions of dollars in local, state and federal tax revenues.
“Our members, like all business entities, are suffering the effects of the stalled economy,” said Steve McDonald, SEMA vice president of government affairs. “In fact, for our members that market product for newer vehicles, we depend on a thriving and vibrant auto industry to create new business opportunities. We support efforts to spur new-car sales. We don’t, however, support public policy efforts that we are convinced don’t work and will waste tax dollars in the process.”

SEMA Urges You to Oppose This Legislation

Two lawmakers—Senator Diane Feinstein (D-CA) and Representative Henry Waxman (D-CA)—need to hear from SEMA members that their vehicle scrappage legislation is a waste of U.S. taxpayer dollars that will cost American jobs in the specialty auto market.

Urgent Action Alert
Oppose Federal Vehicle Scrappage Program
Our efforts to prevent Congress from including a nationwide “Cash for Clunkers” program in the economic stimulus package have been successful – so far. Thousands of SEMA members and SEMA Action Network (SAN) enthusiasts contacted House Speaker Nancy Pelosi in opposition to the plan. The Speaker’s Office informed us that your emails, calls and faxes were received and, thanks to your work, Cash for Clunkers was not included in the economic stimulus package passed by the U.S. House of Representatives. Unfortunately, new legislation (S 247 and HR 520) has been introduced in Congress to create a national vehicle scrappage program which will give U.S. tax dollars to consumers who turn-in their “gas guzzlers” to have them crushed. Lawmakers need to scrap this idea!

Contact Senator Diane Feinstein (D-CA) and Rep. Henry Waxman (D-CA) Immediately to Oppose S. 247 and H.R. 520

The so-called “Accelerated Retirement of Inefficient Vehicles Act” is Cash for Clunkers with a twist. Instead of focusing exclusively on older cars, this program would target vehicles with low fuel economy ratings of any model year. Vehicles targeted for the scrap pile will likely include Chevy Blazers, Chevy Silverados, Chevy S-10s, Chevy Tahoes, Dodge Dakotas, Dodge Rams, Ford Explorers, Ford F-Series, Jeep Cherokees, Jeep Wranglers and any other SUV or truck that obtains less than 18 miles per gallon. Participants would receive cash vouchers ranging from $2,500 to $4,500 based on the model year and whether the replacement vehicle was a more fuel-efficient new car or used car (MY 2004 or later). Fuel-efficient is defined as getting at least 25 percent better mileage for the corporate average fuel economy (CAFE) target for its class. It will be illegal to resell the scrapped vehicles. Bill sponsors want to destroy four million pickups and SUVs over the next four years.

Don’t Delay! Please contact Senator Diane Feinstein and Rep. Henry Waxman today to urge their opposition to S. 247 and H.R. 520. For those who responded to our first call for action, we need you again, along with everyone else.

Contact Sen. Diane Feinstein to oppose S. 247
• Click here to send an email: http://feinstein.senate.gov/public/index.cfm?FuseAction=ContactUs.EmailMe
• Call: (202) 224-3841
• Fax: (202) 228-3954

Contact Henry Waxman to oppose HR 520
• Click here to send an email: http://energycommerce.house.gov/index.php?option=com_content&task=view&id=1313&Itemid=1
• Call: (202) 225-2927