Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: Detroit Three call Japan's cash-for-clunkers program unfair]]>http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/#commentsFiled under: , ,



The U.S. Car Allowance Rebate System (a.k.a. 'cash-for-clunkers') program was a short-term boon for automakers participating in our market. Sales went up, inventory went down and nearly 700,000 vehicles that would likely have otherwise ended up on used car lots were destroyed. And since the U.S. is essentially a free market where automakers around the globe are allowed to participate, Japanese and European automakers benefited from the program as well. In fact, Japanese automakers fared even better than their U.S. competitors, as Toyota, Honda and Nissan are said to have surpassed their market share with the program. A reported 319,000 of the 677,000 vehicles sold via cash-for-clunkers were from Japanese companies. But while the U.S. C4C program took place in a free market where everybody is able to participate, critics are complaining that the new Japanese program is anything but equal opportunity.

Japan is considered by many to be the world's most insular auto market, and its $3.7 billion government clunker program makes U.S. autos ineligible for government assistance. According to The Detroit News, the program, which the Japanese government is using to spur sales (which are down 17 percent versus 2008 levels), provides cash rebates of up to $2,830 for customers who turn in vehicles 13 years or older. Car buyers who don't turn in a vehicle can still get over $1,100 toward the purchase of a new vehicle. An estimated 87 percent of all Japanese vehicles are eligible for the program, while zero vehicles from General Motors, Ford and Chrysler will be eligible.

The DetNews is reporting that Motown automakers have written a letter to the Deputy U.S. Trade Representative calling for action on a matter that was called "another example of Japan continuing efforts to discriminate against imported vehicles." Carol Guthry of the U.S. Trade Representative told the newspaper that the government is working to resolve the issue, adding "our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program."

While we're not exactly import/export experts and we don't have any experience with foreign relations, we're thinking it's about time Japan treated foreign automakers in the Land of the Rising Sun with the same level of equality that its automakers receive elsewhere in the world. What do you think? Have your say in 'Comments.'

[Source: The Detroit News | Image: Yoshikazu Tsuno/AFP/Getty]

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair originally appeared on Autoblog on Fri, 11 Dec 2009 10:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>C.A.R.S.c4cCar Allowance Rebate SystemCarAllowanceRebateSystemCarol GuthryCarolGuthryCARScash for clunkersCashForClunkerschryslerdetroit threeDetroitThreefordgmimportexportjapanjapanese cash for clunkersJapaneseCashForClunkersprotectionismtarifftarrifftrade protectionismTradeProtectionismFri, 11 Dec 2009 10:32:00 EST<![CDATA[P.J. O'Rourke reviews a book about cars called, "Cars"]]>http://www.autoblog.com/2009/12/10/image-p-j-orourke-reviews-a-book-about-cars-called-cars/http://www.autoblog.com/2009/12/10/image-p-j-orourke-reviews-a-book-about-cars-called-cars/http://www.autoblog.com/2009/12/10/image-p-j-orourke-reviews-a-book-about-cars-called-cars/#commentsFiled under: ,



The holidays are almost here and your gearhead loved ones need presents. Badly. But what to get them? Well, we like tools. Gloves to protect us from grease, too. Oh, and we love models of cars. Of course most spouses we know don't really want tools, gloves or small cars sitting on the coffee table. So what about a nice book?

You're in luck, as there are lots of books about cars, usually filled with lovely pictures that look totally fabulous when displayed proudly in the living room (says us). Speaking of books, one of our favorite authors, P.J. O'Rourke, reviewed a new book for the New York Times called Cars: Freedom, Style, Sex, Power, Motion, Colour, Every­thing.

If you don't know, O'Rourke is one of our favorite authors because he refuses to pull punches. Like this, "Buy this book, but don't read it." Why would P.J. recommend purchasing a book but not reading it? Well, as he tells it, the pictures are beautiful but the words aren't. As O'Rourke says towards the end of his review of Cars, "I have no idea what he's talking about." Still, the pictures look good.

[Source: New York Times]

P.J. O'Rourke reviews a book about cars called, "Cars" originally appeared on Autoblog on Thu, 10 Dec 2009 08:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CarsGiftsNew York TimesNewYorkTimesP.J. ORourkeP.j.OrourkeThu, 10 Dec 2009 08:58:00 EST<![CDATA[SEMA 2009: What we didn't get to cover]]>http://www.autoblog.com/2009/11/06/sema-2009-what-we-didnt-get-to-cover/http://www.autoblog.com/2009/11/06/sema-2009-what-we-didnt-get-to-cover/http://www.autoblog.com/2009/11/06/sema-2009-what-we-didnt-get-to-cover/#commentsFiled under: , , , , , , , , , ,


2009 SEMA Show Las Vegas - Click above for high-res image gallery

Every year at SEMA, we fill the week with posts featuring special vehicles and products that we felt were important enough to share. Generally, they are the most newsworthy projects and new model introductions, but sometimes they are just things that caught our eye. When all is said and done, we think we've given all of you a good taste of what's on offer here in the desert.

Of course, there are always things we see and shoot that don't make it into the regular posts from the days we are here. We end up with a few hundred photos of random weirdness and cool stuff that just didn't make it into a dedicated post. That's what this post is for. It's basically a chance to dump some of that random wackiness and wonder that is SEMA into one big bowl and invite you all to take a sip. Click on the gallery below and you'll see race cars, hot rods, muscle cars, motorcycles, wheels and more. None are labeled, but all should provide a unique look at what we saw at SEMA 2009.


Gallery: SEMA 2009: Random sightings


Photos copyright (C)2009 Frank Filipponio/Weblogs, Inc.

SEMA 2009: What we didn't get to cover originally appeared on Autoblog on Fri, 06 Nov 2009 19:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aftermarketcarcarscustomcustom carcustom carsCustomCarCustomCarslas vegasLasVegasSEMAsema 2009Sema showSema2009SemaShowFri, 06 Nov 2009 19:30:00 EST<![CDATA[Hard to Handle: Recyclers reportedly facing crush of cars after C4C]]>http://www.autoblog.com/2009/10/28/hard-to-handle-recyclers-reportedly-facing-crush-of-cars-after/http://www.autoblog.com/2009/10/28/hard-to-handle-recyclers-reportedly-facing-crush-of-cars-after/http://www.autoblog.com/2009/10/28/hard-to-handle-recyclers-reportedly-facing-crush-of-cars-after/#commentsFiled under:



The ramifications of America's. Cash for Clunkers program are still being figured out - which isn't all that surprising given that a total of 700,000 or so sales totaling $2.877 billion were processed in just one month. And besides facing the unfortunate lack of suitable demolition derby material, scrapyards are reportedly finding themselves ill-equipped to deal with all the junked iron sitting behind their barbed-wire fences.

To fully benefit from the program, these scrap cars need to be properly recycled, a process that includes removing most (if not all) of the good usable parts from each vehicle before sending the remaining hulk through crush and melt-down machines. According to the rules outlined in the original Car Allowance Rebate System documentation, recyclers had six months to dispose of all these car-casses. Apparently, that's not nearly enough time.

The American Recyclers Association explains that the initial six month deadline might have been acceptable before Congress tripled the size of the C4C program, but more time will likely be needed to deal with the mess left by the program's expansion. Another six months is now being requested of the Department of Transportation, though no final decisions have been made thus far.

[Source: The Associated Press via MSNBC | Image: Justin Sullivan/Getty Images]

Hard to Handle: Recyclers reportedly facing crush of cars after C4C originally appeared on Autoblog on Wed, 28 Oct 2009 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>American Recyclers AssociationAmericanRecyclersAssociationauto dismantlingauto salvageAutoDismantlingAutoSalvagec4cc4c demandC4cDemandcar allowance rebate systemCarAllowanceRebateSystemCARSCash for Clunkerscash for clunkers billCashForClunkersCashForClunkersBilldismantlingDoTjunk carjunk carsjunk yardJunkCarJunkCarsJunkYardsalvagescrap carscrap carsScrapCarScrapCarsWed, 28 Oct 2009 09:59:00 EST<![CDATA[Top Ten "green" cars that met their fate during Cash for Clunkers]]>http://www.autoblog.com/2009/09/26/top-ten-green-cars-that-met-their-fate-during-cash-for-clunker/http://www.autoblog.com/2009/09/26/top-ten-green-cars-that-met-their-fate-during-cash-for-clunker/http://www.autoblog.com/2009/09/26/top-ten-green-cars-that-met-their-fate-during-cash-for-clunker/#comments

One rule that all clunked cars needed to adhere to was a maximum rating of 18 MPG from the federal government, right? What wasn't required was that the clunked car be considered dirty. After all, it's pretty clear that CNG vehicles burn clean, but that didn't stop 232 of them from meeting their sodium silicate solution-induced death.

We looked through the official, but as of yet unverified, list (PDF) of trade-in cars that were clunked using the Car Allowance Rebate System (Cash for Clunkers) and found that the aforementioned CNG vehicles, 1,779 flex-fuel vehicles and 24 LPG vehicles found their way to the recycler thanks to CARS. Which alternative-fuel models were most dumped? Which single hybrid took a dive? Click above for our top ten and check out the full list after the jump.

Photo by dno1967. Licensed under Creative Commons license 2.0.

Continue reading Top Ten "green" cars that met their fate during Cash for Clunkers

Top Ten "green" cars that met their fate during Cash for Clunkers originally appeared on Autoblog on Sat, 26 Sep 2009 18:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>b3000carscash for clunkersCashForClunkersclunkerscnge250explorerf150featuredflex-fuelflex-fuel vehicleFlex-fuelVehiclefordgrand marquisGrandMarquisgreenmazdamercurymountaineerrangersierrasonomaSat, 26 Sep 2009 18:22:00 EST<![CDATA[REPORT: GM tells dealers to think small to sell big]]>http://www.autoblog.com/2009/09/01/report-gm-tells-dealers-to-think-small-to-sell-big/http://www.autoblog.com/2009/09/01/report-gm-tells-dealers-to-think-small-to-sell-big/http://www.autoblog.com/2009/09/01/report-gm-tells-dealers-to-think-small-to-sell-big/#commentsFiled under: , , , , , ,


2011 Chevrolet Cruze - Click above for high-res image gallery

After decades of pushing heavy iron, General Motors executives are telling the company's dealers to think "beyond our dominance in trucks" and prepare to start selling small cars (vehicles like the forthcoming Chevrolet Cruze, above). The message was broadcast late last week at the Rock Financial Showplace in Michigan, as representatives from about 430 GM dealers gathered to hear the automaker's latest plans as they emerge from bankruptcy. Brent Dewar, the new vice president of Chevrolet Global, added that dealers, "have to think slightly different... about how to sell the value of the vehicle on content and that small doesn't mean less."

Other news to emerge from the event included the announcement that GM had appointed an executive tasked with retaining the three million GM customers who will lose their vehicle model, GM brand, or dealership to the restructuring, and that Buick is planning a new mid-size sedan for 2010 followed by a compact car in late 2011. GM also said that strong Pontiac sales this summer will allow the brand to exhaust its inventory by the end of the year, ahead of earlier projections.


Gallery: 2011 Chevy Cruze


[Source: The Detroit Free Press]

REPORT: GM tells dealers to think small to sell big originally appeared on Autoblog on Tue, 01 Sep 2009 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2011 Chevrolet Cruze2011ChevroletCruzeBrent DewarBrentDewarCarsChevroletChevrolet CruzeChevroletCruzeCruzeGM MeetingGmMeetingRock Financial ShowplaceRockFinancialShowplaceSmallthink smallThinkSmallTue, 01 Sep 2009 13:58:00 EST<![CDATA[REPORT: Cash for Clunkers is costing charitable organizations donations]]>http://www.autoblog.com/2009/08/17/report-cash-for-clunkers-is-costing-charitable-organizations-in/http://www.autoblog.com/2009/08/17/report-cash-for-clunkers-is-costing-charitable-organizations-in/http://www.autoblog.com/2009/08/17/report-cash-for-clunkers-is-costing-charitable-organizations-in/#commentsFiled under: ,

Cash for Clunkers is good news for people looking to trade in their old cars for new ones. It's good news for America's troubled car dealers. It's good news for automakers. And it's good news for auto workers, some of whom have been called back to work on assembly lines ramping up to meet demand generated by the initiative.

But with every upside, there are downsides, both predictable and otherwise. That appears to be the case for America's needy citizens according to a new report by Reuters. Not because the poor, elderly and disabled war veterans are driving around in old cars, but because the charitable organizations that once relied on the donation of old cars to sustain their activities have seen a marked drop in the number of old clunkers being donated, as their owners are apparently opting for government-sponsored trade-ins instead.

One veteran's aid organization, the Military Order of the Purple Heart, estimates that the $3 billion allocated overall by the federal government towards the C4C program - known officials as the Car Allowance Rebate System (CARS) - amounts to some 700,000 vehicles, which could cost charities like theirs some $105 million in donated vehicles. The lost income will mean that charities will have to cut services and perhaps even employees.

The organizations in question have yet to substantially change their approach to soliciting donations, however, a bill being proposed in Congress could allow patrons donating their cars to charitable organizations to declare tax deductions of $2500 or the car's appraised value - a significant jump over the current $500 (or auction price if the organization sells the car), but still a far cry from the $4500 many are receiving on trade-in under the Cash for Clunkers program.

[Source: Reuters]

REPORT: Cash for Clunkers is costing charitable organizations donations originally appeared on Autoblog on Mon, 17 Aug 2009 17:39:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>c4ccar allowance rebate systemCarAllowanceRebateSystemcarscash for clunkersCashForClunkerscharitable donationsCharitableDonationscharityrebateMon, 17 Aug 2009 17:39:00 EST<![CDATA[Cash for Clunkers: Dealers claim more than 316,000 "clunkers" for $1.33 billion [w/VIDEO]]]>http://www.autoblog.com/2009/08/12/cash-for-clunkers-dealers-claim-more-than-316-000-clunkers-fo/http://www.autoblog.com/2009/08/12/cash-for-clunkers-dealers-claim-more-than-316-000-clunkers-fo/http://www.autoblog.com/2009/08/12/cash-for-clunkers-dealers-claim-more-than-316-000-clunkers-fo/#commentsFiled under: , ,



On Monday we reported that as of August 7, U.S. auto dealers had received 245,000 Clunkers worth $1.03 billion as of. Today is Wednesday, August 12 and those numbers have swelled by 71,000 cars and $300 million. Put another way, dealers are hoping to collectively collect $60 million a day. And that's counting weekends. The amount per weekday is closer to $90 million.

As of right now, there's $1.66 billion left in the replenished Cash 4 Clunkers program. If consumers continue buying cars at the current rate, that's just about 28 days until the program is tapped out. We know there's a zombie film analogy to be made here, but we're going to resist. We will however provide a video (after the jump) of a 1995 Ford Explorer getting its engine seized, which we know to some folks is more frightening than any zombie flick.

[Source: Detroit News | Image Source: Paul J. Richards/Getty/AFP]

Continue reading Cash for Clunkers: Dealers claim more than 316,000 "clunkers" for $1.33 billion [w/VIDEO]

Cash for Clunkers: Dealers claim more than 316,000 "clunkers" for $1.33 billion [w/VIDEO] originally appeared on Autoblog on Wed, 12 Aug 2009 18:26:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CARSCash 4 ClunkersCash for ClunkersCash4ClunkersCashForClunkersCCClunkersObamaWed, 12 Aug 2009 18:26:00 EST<![CDATA[Dealers claim $1.03 billion worth of Cash for Clunkers]]>http://www.autoblog.com/2009/08/10/update-dealers-claim-1-03-billion-worth-cash-for-clunkers/http://www.autoblog.com/2009/08/10/update-dealers-claim-1-03-billion-worth-cash-for-clunkers/http://www.autoblog.com/2009/08/10/update-dealers-claim-1-03-billion-worth-cash-for-clunkers/#commentsFiled under: ,



As of last Friday, August 7, US dealers submitted 245,384 Clunker claims totaling $1,030,000,000. That's an awful lot of government cheese, so to speak. According to data released by the Department of Transportation (DOT), claims were up an amazing 33% in two days since Wednesday, August 5. There's no information on how many of the dealer claims Uncle Sam has approved for reimbursement, but the DOT data does show the average claim per vehicle is for $4,197, meaning most consumers are getting $4500 C4C rebates, as opposed to $3500 ones.

What's notable about the 33% jump from Wednesday to Friday is that there was no guarantee that the Senate would approve an additional $2 billion in C4C funding on Wednesday. So the dealers selling new cars were flying without a net. Luckily, for those same dealers, the Senate approved the extra dollars on Thursday and President Obama signed the extension into law on Friday. Also, the technical glitches that were haunting C4C early on have largely been worked out and the entire process is reportedly flowing more smoothly. Any guesses as to when the new $2 billion is maxed out?

[Source: Automotive News - Sub. Req. | Image Source: Gabriel Bouys/Getty]

Dealers claim $1.03 billion worth of Cash for Clunkers originally appeared on Autoblog on Mon, 10 Aug 2009 16:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>C4CCARSCash for ClunkersCashForClunkersClunkersObamaMon, 10 Aug 2009 16:58:00 EST<![CDATA[REPORT: Toyota Corolla passes Ford Focus as top C4C car; program extended thru September]]>http://www.autoblog.com/2009/08/06/report-toyota-corolla-passes-ford-focus-as-top-c4c-car-program/http://www.autoblog.com/2009/08/06/report-toyota-corolla-passes-ford-focus-as-top-c4c-car-program/http://www.autoblog.com/2009/08/06/report-toyota-corolla-passes-ford-focus-as-top-c4c-car-program/#commentsFiled under: ,

2009 Toyota Corolla XRS - click above image for high-res gallery

The more things change, the more they change back again. Or something. As of August 3, Reuters reports that the number one car Cash for Clunking consumers were purchasing was the long-in-the-tooth Ford Focus. Well, just two short days later, the Focus has been dethroned and Toyota's Corolla - the best selling car in the history of the world - has reportedly taken the crown. Two fun piece of relevant (if tangential) trivia - Corolla means "little crown" in Latin, and one example is sold about every 40 seconds, meaning that by the time you finish reading this post, two more will have found homes. In case you were wondering, Ford's price leader drops to number two and the Honda Civic has shifted into third place. Toyota has two other cars rounding out the top five, the Prius and the Camry. And just over 80% of the clunkers being traded-in are still trucks.

To date, 180,000 new cars have been sold as a result of the C4C program. So far, the program's total government expenditure amounts to just over $775 million. Late Wednesday, the Senate reached an agreement that would pour an additional $2 billion into C4C coffers. Additionally, consumers will now have until September 1 to trade in their old cars and receive a voucher for between $3,500 to $4,500. The new plan was largely pushed through by Senate Majority Leader Harry Reid, who pointed out that Democrats have enough votes to approve the new plan as well as reject any changes to it. Cheers to Matt and several others for the tip.


Gallery: Review: 2009 Toyota Corolla XRS


Photos Copyright (C)2008 Dan Roth / Weblogs, Inc.
[Sources: Reuters via CNN Money; Fox News]

REPORT: Toyota Corolla passes Ford Focus as top C4C car; program extended thru September originally appeared on Autoblog on Thu, 06 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>C4CCamryCARSCash for ClunkersCashForClunkersCorollaFord FocusFordFocusHarry ReidHarryReidHonda CivicHondaCivicPriussenateToyotaToyota CamryToyota CorollaToyota Corolla XRSToyota PriusToyota Prius HybridToyotaCamryToyotaCorollaToyotaCorollaXrsToyotaPriusToyotaPriusHybridThu, 06 Aug 2009 09:00:00 EST<![CDATA[Jim Cramer throws his Mad Money behind Cash for Clunkers]]>http://www.autoblog.com/2009/08/04/jim-cramer-throws-his-mad-money-behind-cash-for-clunkers/http://www.autoblog.com/2009/08/04/jim-cramer-throws-his-mad-money-behind-cash-for-clunkers/http://www.autoblog.com/2009/08/04/jim-cramer-throws-his-mad-money-behind-cash-for-clunkers/#commentsFiled under: , ,



Capitalist-on-steroids Jim Cramer of Mad Money fame (or, if you're a Daily Show fan, infamy) thinks Cash For Clunkers is a great idea. This might surprise some of you (and shock us), but here's his reasons why:
  1. If the total price tag of C4C is $4 to $5 billion dollars, big deal - we spent more than that on Corn Flakes in Iraq.
  2. General Motors and Chrysler are already welfare queens, at least C4C lets them move some metal.
  3. C4C gives Ford, which Cramer calls "the most important auto company with the best lineup of fuel-efficient cars" a chance to stop burning cash, offer refinancing and perhaps equity offers (i.e. offer some common stock).
  4. The environment will be cleaner - "We are doing something good against global warming."
Cramer does go on to say that certain parts of C4C smacks of The New Deal, but Clunkers' (relatively) small price tag is a cheap way to clean up the environment, fight unemployment and move inventory. Says Jim, "[i]t worked for the Chinese with their vouchers to spend, it's working here. What's the issue? Come on Senate, go make it bigger!"

[Source: Blogging Stocks | Image: Rusty Jarrett/Getty]

Jim Cramer throws his Mad Money behind Cash for Clunkers originally appeared on Autoblog on Tue, 04 Aug 2009 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>C4CCar Allowance Rebate SystemCarAllowanceRebateSystemCARSCash for ClunkersCashForClunkersDaily ShowDailyShowfinancial analystFinancialAnalystJim CramerJimCramerJohn StewartJohnStewartMad MoneyMadMoneyThe Daily ShowTheDailyShowTue, 04 Aug 2009 15:30:00 EST<![CDATA[Can't Win For Losing: Chrysler kills Cash for Clunkers incentives after running out of cars?]]>http://www.autoblog.com/2009/08/03/report-chrysler-kills-cash-for-clunkers-incentives-after-runnin/http://www.autoblog.com/2009/08/03/report-chrysler-kills-cash-for-clunkers-incentives-after-runnin/http://www.autoblog.com/2009/08/03/report-chrysler-kills-cash-for-clunkers-incentives-after-runnin/#commentsFiled under: , , , ,



What do you do with a program that is driving so many customers into your showrooms that inventory is now running low? If you are Chrysler, and it's the popular incentive plan tied to the government's C.A.R.S. (a.k.a. "Cash for Clunkers") program, you extinguish it and replace it with a new, less attractive version. Really.

The Wall Street Journal is reporting that as of Tuesday, Chrysler Group LLC will no longer automatically add another $4,500 of its own incentives on top of the $4,500 CARS rebate. Instead, the company will vary the size of the rebates based on vehicle brand and model.

The about-face is the result of a near-unbelievable turn of events for the struggling automaker. An overabundance of inventory forced Chrysler to shut down its factories earlier this year... and now it is faced with dealers complaining about low inventory levels on key vehicles like the Town and Country and Jeep Wrangler, with swelling waiting lists as the incentive program has proven too fruitful.

[Source: The Wall Street Journal | Image: Scott Olson/Getty]

Can't Win For Losing: Chrysler kills Cash for Clunkers incentives after running out of cars? originally appeared on Autoblog on Mon, 03 Aug 2009 09:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CancelcarsCashcash for clunkerscash for clunkers billCashForClunkersCashForClunkersBillChryslerEnd programEndProgramIncentivesMon, 03 Aug 2009 09:55:00 EST<![CDATA[Doh! Dealers learn Cash for Clunkers rebates count as taxable income]]>http://www.autoblog.com/2009/08/01/doh-dealers-learn-cash-for-clunkers-rebates-count-as-taxable-in/http://www.autoblog.com/2009/08/01/doh-dealers-learn-cash-for-clunkers-rebates-count-as-taxable-in/http://www.autoblog.com/2009/08/01/doh-dealers-learn-cash-for-clunkers-rebates-count-as-taxable-in/#commentsFiled under: ,



As you're aware by now, yesterday's big news was H.R. 3435, the emergency legislation passed by the House of Representatives authorizing an additional $2B for the CARS scrappage scheme. As had been widely reported on Thursday, the clunkers program appeared to have run out of money a lot sooner than anyone had expected, sending legislators in favor of it into a panic. After a period of impassioned floor debate (the Michigan delegation appeared on the verge of a collective nervous breakdown, treating the possible suspension of C4C as the apocalypse), the resolution passed and will head on to the Senate next week for additional debate and a final vote. In the meantime, Cash for Clunkers stays online. For dealers, however, the action in the House wasn't the only important news to come out yesterday.

According to Automotive News, NHTSA -- the government bureaucracy responsible for administering the CARS program -- conducted a webinar for automobile dealers last Monday. During that session, retailers were reportedly told that the federal rebate cash they'd be receiving would be non-taxable. Now, for the buyers trading in so-called clunkers, this is indeed the case. Unfortunately for car dealers, however, it appears that NHTSA got the explanation wrong. In fact, AN reports that the IRS issued an advisory bulletin yesterday confirming that yes, the federal rebates dealerships receive for CARS trades count as taxable gross income.

Apparently, some retailers believed that since their customers weren't getting taxed, neither were they. And if the Automotive News account of events is accurate, it's fairly obvious that NHTSA didn't fully understand the tax implications either when they conducted their webinar. As a result, some dealer smiles around the country are likely turning into frowns this weekend. The money line in the AN piece comes from Dick Heider, a dealer accountant who points out that the CARS cash simply counts as a normal payment to the retailer, and thus is taxable. "What you are dealing with are people who don't understand accounting," he says. Apparently, on all sides of the equation.

[Source: Automotive News | Photo: Steve Lyon (CC by SA 2.0)]

Doh! Dealers learn Cash for Clunkers rebates count as taxable income originally appeared on Autoblog on Sat, 01 Aug 2009 12:07:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CARScash for clunkersCashForClunkersIRSNHTSArebatestaxesSat, 01 Aug 2009 12:07:00 EST<![CDATA[REPORT: Cash For Clunkers to live through today, $2 billion more on its way [UPDATE]]]>http://www.autoblog.com/2009/07/31/report-cash-for-clunkers-to-live-through-today/http://www.autoblog.com/2009/07/31/report-cash-for-clunkers-to-live-through-today/http://www.autoblog.com/2009/07/31/report-cash-for-clunkers-to-live-through-today/#commentsFiled under: , ,



Last night came the shaky, breathless news that Cash for Clunkers (C4C), the federal program to get older, more polluting cars off the roads by giving consumers between $3,500 and $4,500 rebates for their trade ins, had run out of money and was being shut down. Not so fast says the Detroit Free Press. C4C will live through the end of July. Which is... today.

Seems as if Michigan senator Carl Levin was assured by Transportation Secretary Ray LaHood (seen above at the program's kick off last Monday) that the suddenly befuddled, successful and possibly broke program will survive through Friday. After today? "Depends on whether the administration can find some money."

The Detroit News is reporting that money is on its way in the form of $2 billion siphoned from an energy loan guarantee program since Cash for Clunkers is a more urgent priority. The House of Representatives introduced H.R. 3435 today, which will like move through Congress at a rapid pace, though no one knows what will happen if more money isn't approved by midnight tonight.

UPDATE: H.R. 3435 just passed the House of Representatives by a vote of 316 to 109. This means the Cash for Clunkers bill is halfway to getting an influx of $2 billion, pending a vote by the Senate next week. Despite the delay, we're hearing reports that the program will not be suspended in the interim and that people can expect the rebates to be available while car shopping this weekend.

[Source: Detroit Free Press, The Detroit News | Photo by Win McNamee/Getty]

REPORT: Cash For Clunkers to live through today, $2 billion more on its way [UPDATE] originally appeared on Autoblog on Fri, 31 Jul 2009 12:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3500 voucher3500Voucher4500 voucher4500VoucherbreakingCar Allowance Rebate SystemCarAllowanceRebateSystemCarl LevinCarlLevinCARSCash 4 ClunkersCash for ClunkersCash4ClunkersCashForClunkersClunkersRay LaHoodRayLahoodFri, 31 Jul 2009 12:29:00 EST<![CDATA[REPORT: Cash for Clunkers could be dead tonight [UPDATE]]]>http://www.autoblog.com/2009/07/30/report-cash-for-clunkers-could-be-dead-tonight/http://www.autoblog.com/2009/07/30/report-cash-for-clunkers-could-be-dead-tonight/http://www.autoblog.com/2009/07/30/report-cash-for-clunkers-could-be-dead-tonight/#commentsFiled under: , ,



Congress allocated close to $1 billion for the Cash for Clunkers program. That's billion with nine zeros. And all that money might be gone by midnight tonight. This, according to reports by both the Detroit Free Press and Edmunds AutoObserver. We learned earlier that the C4C program has proved to be much more successful than initially thought, with 22,782 consumers taking advantage of between $3,500 to $4,500 federal duckets for their old "clunkers" during the programs first five days. In fact, so many people are taking the feds up on the deal that dealers are worried they are going to lose track of all the trade-ins. The Department of Transportation (DOT) could announce the suspension of the program as soon as tonight. In fact, they could announce that all the money is gone and the program is over. We gotta wonder what John Maynard Keynes would make of all this.

UPDATE: As of 9:41PM EST, the Detroit Free Press is reporting that White House administration officials alerted Congress this evening that the Cash for Clunkers would be suspended, though White House officials have denied the report. Confusion is running rampant at this point, but it seems that the $950 million allocated for reimbursement of passenger car and light truck rebates is all but gone and government officials will spend Friday figuring out how to find more money for the program and untangle the reimbursement process for dealers.

[Sources: FREEP, AutoObserver | Image Source: Theo Heimann/Getty]

REPORT: Cash for Clunkers could be dead tonight [UPDATE] originally appeared on Autoblog on Thu, 30 Jul 2009 20:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3500 Voucher3500Voucher4500 Voucher4500VoucherbreakingC4CCar Allowance Rebate SystemCar BuyingCarAllowanceRebateSystemCarBuyingCARSCash 4 ClunkersCash for ClunkersCash4ClunkersCashForClunkersDealersDepartment of TransportationDepartmentOfTransportationDOTThu, 30 Jul 2009 20:05:00 EST<![CDATA[Cash for Clunkers racks up 22,782 trade-ins and $95.9 million so far]]>http://www.autoblog.com/2009/07/30/cash-for-clunkers-racks-up-22-782-trade-ins-and-95-9-million-so/http://www.autoblog.com/2009/07/30/cash-for-clunkers-racks-up-22-782-trade-ins-and-95-9-million-so/http://www.autoblog.com/2009/07/30/cash-for-clunkers-racks-up-22-782-trade-ins-and-95-9-million-so/#commentsFiled under: ,



When the government's Cash for Clunkers program returned 4,026 orders on its first full day of availability, some were surprised by the speed with which the sales booster took off. After only five days, the program seems to have picked up steam rather than lost it: 22,782 trade-ins have funneled through dealer lots in the 3-4 days since Monday when the program began. So far, dealers have requested $95.9 million in reimbursement money from the government, or about 10% of the funds that were supposed to keep the program running into November. The cars.gov website currently shows $75 million left for CAT3 trucks and $779 million out of $1 billion for everything else.

So far, the average rebate value is reportedly $4,209, which means most customers are eligible for the $4,500 voucher that requires a new vehicle purchase with a 10+ mpg improvement verses the model being traded in. Tuesday was the busiest day so far, with $51 million worth of reimbursements filed by dealers, and there were $27 million filed on Wednesday.

The National Automotive Dealers Association says the program will likely run out of money well before the November deadline. If C4C continues at its current pace, the program could end as early as September. According to the National Highway Traffic Safety Association, some 23,000 dealers have submitted registrations and 19,328 have been approved.

[Source: Automotive News, sub. req'd]


Cash for Clunkers racks up 22,782 trade-ins and $95.9 million so far originally appeared on Autoblog on Thu, 30 Jul 2009 16:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>3500 voucher3500Voucher4500 voucher4500Voucherc4cCar Allowance Rebate Systemcar buyingCarAllowanceRebateSystemCarBuyingCARScash for clunkersCashForClunkersdealersNHTSAThu, 30 Jul 2009 16:29:00 EST<![CDATA[REPORT: EPA performs 11th-hour refresh that makes some cars ineligible for Cash for Clunkers]]>http://www.autoblog.com/2009/07/28/report-epa-performs-11th-hour-refresh-that-makes-some-cars-inel/http://www.autoblog.com/2009/07/28/report-epa-performs-11th-hour-refresh-that-makes-some-cars-inel/http://www.autoblog.com/2009/07/28/report-epa-performs-11th-hour-refresh-that-makes-some-cars-inel/#commentsFiled under: , ,


It seems the folks working the late shift at the EPA made a few changes to their published numbers just before the federal Car Allowance Rebate System - CARS (a.k.a. "Cash-for-Clunkers") program went into effect last week. The sweetening $3,500 and $4,500 incentives are available to consumers who trade-in 1984 or newer vehicles with a combined fuel economy average of 18 miles-per-gallon, or less in exchange for more fuel efficient transportation (22 mpg or better in the combined cycle).

Owners of certain 1993 Toyota Camry V6 wagons, 1992 Saab 900S hatchbacks (a turbo is shown), and 1988 Toyota 4Runner 2.4-liter models voiced their complains to Edmunds.com, frustrated that their eligible EPA 18 mpg combined ratings had been bumped to ineligible EPA 19 mpg combined ratings as the agency "refreshed" some of its numbers at the last minute. While few of us would complain about a free 5 percent gain in gas mileage, when it unexpectedly robs vehicle owners upwards of $4,500 on a federal incentive program, well, we'd be a bit miffed too, especially as there has been no official announcement as to why the changes have taken place.

[Source: Edmunds.com]

REPORT: EPA performs 11th-hour refresh that makes some cars ineligible for Cash for Clunkers originally appeared on Autoblog on Tue, 28 Jul 2009 11:28:00 EST. Please see our terms for use of feeds.

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Nothing is ever as simple as it seems. One prime example is the government's newly minted "Cash for Clunkers" program, or CARS (Car Allowance Rebate System) that launched yesterday.

As the rebate program kicks into gear, dealers that are hoping to cash in are facing a new worry. But according to Automotive News, they may end up having to pay federal and/or state taxes on the rebate money they receive from the federal government. It seems that the lobbyists and congressional aides who actually wrote the bill neglected to address the issue of whether the rebates count as income for dealers.

In the end, the bill passed by Congress explicitly states that the rebates don't count as income for consumers. As for the dealers, oops! Nothing in the rules published by the National Traffic Safety Administration or the law says anything one way or the other, which means that the Internal Revenue Service and individual states will have to make the call. Some dealers are already setting aside cash just in case they end up having to pay.

[Source: Automotive News - sub. req'd | Image: Justin Sullivan/Getty]

REPORT: Dealers may have to pay taxes on Cash for Clunkers rebates originally appeared on Autoblog on Tue, 28 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>car allowance rebate systemCarAllowanceRebateSystemcarscash for clunkerscash for clunkers billcash for clunkers taxesCashForClunkersCashForClunkersBillCashForClunkersTaxesdealershipincome taxIncomeTaxrebaterebate incomeRebateIncometaxesTue, 28 Jul 2009 08:00:00 EST<![CDATA[Rules for CARS, the cash for clunkers bill, released]]>http://www.autoblog.com/2009/07/25/rules-for-cars-the-cash-for-clunkers-bill-released/http://www.autoblog.com/2009/07/25/rules-for-cars-the-cash-for-clunkers-bill-released/http://www.autoblog.com/2009/07/25/rules-for-cars-the-cash-for-clunkers-bill-released/#commentsFiled under:

Preliminary rules for the CARS act - which was known as the Cash for Clunkers bill and is now more officially known as the CAR Allowance Rebate System or the Consumer Assistance to Recycle and Save Act of 2009 - were released by the Federal government today. Automakers have been busy doubling the rebates and emphasizing the green results of the bill, but today was the first chance to see exactly how CARS will work. It's about time.

Most of the work is the responsibility of the dealers selling the cars. This makes sense, since the law was passed, in part, to help them. Dealers can find a nearby facility to scrap the cars that are turned in from the CARS website, and need to confirm with the scrappers directly that they can crush or shred the vehicles. Dealers must also do things like disable the engines of the cars coming in, as described on page 127 of the 136-page rulebook (PDF), and have seven days of accepting a trade-in vehicle to get paperwork - a lot of it - to the government in order to receive their money.

Customers are responsible for bringing in an old "clunker" that gets, at most, 18 mpg (thanks, charities) and buy a new vehicle with better mpg. It looks like it might be possible to get more than $4,500 for your trade-in, because any scrap value that the trade-in has can be added to the rebate.

Not everyone is pleased with CARS. The Automotive Aftermarket Industry Association (AAIA) released a statement, available after the jump, saying they anticipate "a consumer backlash once reality replaces the hype." There won't be that much time for the hype to die down, though, since the CARS program is currently scheduled to end on Nov. 1, or when the $1 billion set aside for the program runs out (it could be extended). We'll see.

[Source: Automotive News (sub. req'd), CARS.gov, AAIA]

Continue reading Rules for CARS, the cash for clunkers bill, released

Rules for CARS, the cash for clunkers bill, released originally appeared on Autoblog on Sat, 25 Jul 2009 09:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>18 mpg18Mpgautomotive aftermarket industry associationAutomotiveAftermarketIndustryAssociationbreakingcarscash for clunkerscash for clunkers billCashForClunkersCashForClunkersBillrebateSat, 25 Jul 2009 09:01:00 EST<![CDATA[Hyundai starts accepting Cash-for-Clunkers trade-ins early]]>http://www.autoblog.com/2009/07/02/hyundai-starts-accepting-cash-for-clunkers-trade-ins-early/http://www.autoblog.com/2009/07/02/hyundai-starts-accepting-cash-for-clunkers-trade-ins-early/http://www.autoblog.com/2009/07/02/hyundai-starts-accepting-cash-for-clunkers-trade-ins-early/#commentsFiled under: ,


2009 Hyundai Elantra Touring - Click above for high-res image gallery

While the National Highway Traffic Safety Administration doesn't plan to release its final rules and regulations for the Car Allowance Rebate System (CARS), otherwise known as Cash-for-Clunkers program, until July 23rd, Hyundai has decided that its customers don't have to wait. Alexandria Hyundai in Alexandria, VA has already accepted the first trade-in and doled out its first rebate. The clunker is a 15-mpg 1995 Ford Explorer, and Katherine Michon of Arlington, VA traded it in for a $4,500 credit on a brand new 26-mpg Hyundai Elantra Touring.

How can Hyundai get away with accepting clunkers early? The automaker is giving dealers short-term cash advances to cover the cost of its rebates until the CARS program officially kicks off later this month. Hyundai has 13 models with particular engine combinations that qualify for CARS, and the NHTSA has already confirmed that transactions on or after July 1, 2009 are eligible.

This could be a brilliant move on Hyundai's part, since its own internal research shows that 11 percent of car shoppers have delayed their purchase to take advantage of the rebates. If Hyundai is the only game in town that's accepting trade-ins and giving rebates early, it could steal a few sales away from other brands that are waiting patiently for the program to officially begin.

On the other hand, the NHTSA warns on the CARS official website that "interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued." By that time, however, you'll be driving around in a new car and getting reimbursed for the rebate will by Hyundai's problem.


Gallery: Review: 2009 Hyundai Elantra Touring


[Source: Hyundai]

Continue reading Hyundai starts accepting Cash-for-Clunkers trade-ins early

Hyundai starts accepting Cash-for-Clunkers trade-ins early originally appeared on Autoblog on Thu, 02 Jul 2009 17:28:00 EST. Please see our terms for use of feeds.

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