Autoblog

Hard to Handle: Recyclers reportedly facing crush of cars after C4C

Jeremy Korzeniewski — Wed, 28 Oct 2009 09:59:00 EST

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

'Blue States' reportedly biggest winners in Cash For Clunkers

Michael Harley — Tue, 08 Sep 2009 17:58:00 EST

Filed under: Etc., Government/Legal, Earnings/Financials

In the wake of the government's Cash for Clunkers program, analysts are crunching the data to determine who benefited the most from the month-long incentive program. Interestingly enough, it appears that "Blue States" (states where the residents predominantly vote for Democrat) benefited the most. USA Today reports that the 28 states that voted for Barack Obama have requested nearly $2.13 billion in rebates. On the other hand, states that voted for John McCain (a.k.a. "Red States"), have only requested $757 million.

Political analysts are puzzled, as there is no clear-cut indicator to explain the findings. One has suggested that middle-class Americans in Blue States took advantage of the rebate, even if they weren't in the market for a new car. Another suggested that it was up to the dealers. "I know in Tennessee, dealers were pulling back, whereas in Illinois, the dealers were all gung-ho," said a democratic pollster. One significant deciding factor was credit. Mississippi (a red state) finished second from the bottom. "I'm sure there are a lot of people who would have loved to trade in, but in Mississippi, income and credit right now are the worst I've seen," said the general manager of a dealership in the state.

[Source: USA Today]

'Blue States' reportedly biggest winners in Cash For Clunkers originally appeared on Autoblog on Tue, 08 Sep 2009 17:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Cash for Clunkers leads to shortage of destruction derby cars. Oh, the humanity!

Michael Harley — Sat, 05 Sep 2009 10:37:00 EST

Filed under: Etc., Government/Legal

With 690,000 vehicles sentenced to one final gargle of sodium silicate, thanks to the now-defunct Cash for Clunkers program, demolition-derby drivers seem to have been left holding the short end of the driveshaft. What the government seems to have forgotten is that many cars, hobbling and sputtering as they near death, prefer to make one final trip to the local county fair (assuming they escape a 24 Hours of LeMons team). There, stripped of glass and with fuel tanks moved safely inward, the clunkers die an honorable death smashed gloriously to pieces in front of large (and often well-hydrated), cheering crowds.

"Obama is an anti-demo-derby guy," says Tory Schutte, head of the Demolition Derby Drivers Association. "He's targeting the cars we've been using." (But let's not just blame the President. Scrap metal prices have skyrocketed in the past two years, so many last-leg heaps are heading straight to the junkyard for recycling.) According to those who keep track of such things, there were 3,500 demolition derbies in the U.S. last year. The orchestrated pageantry of bent steel, blown radiators, and dislodged wheels is often the main draw at local county fairs... and the drivers prefer to keep it that way.

[Source: Time | Image: Illinois State Fair]

REPORT: Cash for Clunkers leads to shortage of destruction derby cars. Oh, the humanity! originally appeared on Autoblog on Sat, 05 Sep 2009 10:37:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Ask Autoblog: Why doesn't my guzzler qualify as a clunker?

Sam Abuelsamid — Fri, 14 Aug 2009 12:34:00 EST

Filed under: Car Buying, Government/Legal

We've been hearing plenty of horror stories this past week about people trying and failing to trade in their vehicles under the Cash for Clunkers program. We recently received an e-mail from a reader named Rex asking about his particular case. Unfortunately, a big part of the problem is either lack of information or inaccurate information on the part of both dealers and the government. In Rex's case, he was trying to buy a 2009 GMC Sierra half-ton pickup with a 5.3-liter V8. His initial rejected trade was a 1985 GMC Suburban. After that, he was given two different government numbers to call and no one at those numbers or at the dealer could explain why he was rejected.

The answer is actually quite simple. The 1985 Suburban is rated at 13 mpg combined and the base 5.3-liter 2009 Sierra is rated at 16 mpg combined. To qualify for the clunker rebate, the new vehicle must get at least 4 mpg more than the old one. In this case, if Rex had opted for the Sierra XFE, he should've be able to get the rebate because it is rated at 17 mpg, thus clearing the lower limit.

After the 1985 truck was rejected, Rex offered up a 1990 3/4 ton pickup (example above), which was also turned down. The explanation here was also mpg-related, but for a different reason. The larger, newer truck is a heavy duty unit with a gross vehicle weight rating (GVWR) of over 8,500 pounds. These larger trucks are not subject to CAFE standards and aren't assigned EPA sticker ratings. Without an EPA sticker value, even though this truck is considerably thirstier than the Suburban, it was also turned away.

The moral of the story is to make sure you carefully check the mpg rating of your trade-in and the new vehicle you want to buy before you go shopping. For trucks, the improvement must be at least 2 mpg for the $3,500 rebate and 5 mpg for the $4,500 (for cars: 5 mpg and 10 mpg). You can do the research by visiting fueleconomy.gov.

[Photo by Ethan Miller/Getty]

Ask Autoblog: Why doesn't my guzzler qualify as a clunker? originally appeared on Autoblog on Fri, 14 Aug 2009 12:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Autoblog Podcast #139

Dan Roth — Wed, 05 Aug 2009 17:45:00 EST

Filed under: Car Buying, Podcasts, Acura, Chevrolet, Chrysler, Ford, GM, Earnings/Financials, Fiat

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

As sure as the August heat is going to make that ice cream cone melt all over your hand, the Autoblog podcast keeps notching up new episodes. Chris, Sam, and Dan blocked out some time to sit in front of the microphones and chat about a few things, and thus we present to you Episode #139 of the Autoblog Podcast. Surprisingly positive sales figures start us off, and we stay on that category for a little while, mulling the Ford Focus's top status as a C4C purchase, and Camaro beating Mustang again in sales figures. Moving on to the truly sublime, we talk about the exotics at the MeadowBrook Concours before hitting on Fiat's MultiAir technology port and then wrapping with some of your questions. Thanks for all the response so far to our survey, and iTunes users can submit reviews of our work at the Autoblog Podcast iTunes page, too. We're always reachable at Podcast at Autoblog Dot Com, too. See you next week!

Continue reading Autoblog Podcast #139

Autoblog Podcast #139 originally appeared on Autoblog on Wed, 05 Aug 2009 17:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Can't Win For Losing: Chrysler kills Cash for Clunkers incentives after running out of cars?

Michael Harley — Mon, 03 Aug 2009 09:55:00 EST

Filed under: Plants/Manufacturing, Chrysler, Dodge, Jeep, Earnings/Financials

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

REPORT: Dealers may have to pay taxes on Cash for Clunkers rebates

Sam Abuelsamid — Tue, 28 Jul 2009 08:00:00 EST

Filed under: Car Buying, Government/Legal

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

REPORT: Nissan engineers tweaking vehicles to meet Cash-for-Clunkers requirements

Michael Harley — Mon, 27 Jul 2009 10:29:00 EST

Filed under: Car Buying, Government/Legal, Nissan

2009 Nissan Sentra FE+ 2.0 SR - Click above for a high-res gallery

In an effort to sweeten the incentive for those taking advantage of the government's Car Allowance Rebate System (a.k.a. "Cash-for-Clunkers"), Nissan has reportedly sent its engineers back to the lab in order to pinch every last mile out of each gallon of fuel. As it is written, the program offers a sweeter incentive when consumers purchase vehicles with greater efficiency (based on the difference in fuel economy between the purchased vehicle and the trade-in).

Putting the squeeze on the Sentra's four-cylinder powerplant yielded a 1 mpg improvement - not bad for some minor drivetrain tuning. If the EPA reviews and confirms the bump, the small gain may create the necessary 10-mpg difference Nissan's customers need for the top $4,500 credit.

The program is set to expire this November. That isn't enough time for Nissan, or any automaker for that matter, to make drastic changes. However, engineers are able to focus on quicker fixes such as using lightweight wheels, subtle engine tuning, and changing option packages to reduce weight. According to Nissan, the lure of trade-in bonuses to attract new customers has promoted the automaker to divert much of its engineering to the cause.

Gallery: 2009 Nissan Sentra FE+ 2.0 SR

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

REPORT: Nissan engineers tweaking vehicles to meet Cash-for-Clunkers requirements originally appeared on Autoblog on Mon, 27 Jul 2009 10:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Rules for CARS, the cash for clunkers bill, released

Sebastian Blanco — Sat, 25 Jul 2009 09:01:00 EST

Filed under: Car Buying

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

NYT interactive tool maps out which vehicles are "domestic" and which ones aren't

Sam Abuelsamid — Mon, 22 Jun 2009 15:29:00 EST

Filed under: Government/Legal, Plants/Manufacturing, South America

Now that the "Cash for Clunkers" bill has passed Congress is ready for President Obama's signature, the next question is: What car should you buy with your trade-in bonus? There were two primary motivations behind this legislation, economic and environmental. From an environmental perspective the idea is to get older, more polluting and fuel consuming vehicles off the road. On the economic side, Congress wanted to stimulate sales of new cars, especially domestically built models.

Since the 1970s when CAFE regulations first came into effect, the question of what qualifies as a "domestic vehicle" has become increasingly muddy. Under the North American Free Trade Agreement, any car built in the U.S., Canada or Mexico with a minimum percentage of North American-sourced parts and labor qualifies as a domestic. However, the domestic/import fleet split in CAFE has caused automakers to play games by using more overseas parts to cut get them classed as imports - even when they are built in North America. Determining what car is built where is increasingly difficult for those that want to spend their hard-earned cash (or their Clunker voucher) on an American made car. Thankfully, The New York Times is here to help. They've produced an interactive database chronicling which vehicles are actually built in the US along with where major parts like engines and transmissions come from. The NYT tool is easy and enlightening to use, as it reveals interesting tidbits like the fact that Ford's Fusion Hybrid is assembled in Mexico while the Toyota Camry Hybrid hails from Kentucky. Hat tip to JZeke!

[Source: New York Times]

NYT interactive tool maps out which vehicles are "domestic" and which ones aren't originally appeared on Autoblog on Mon, 22 Jun 2009 15:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Consumer Reports lists clunkers to cash in on

Sam Abuelsamid — Tue, 16 Jun 2009 16:27:00 EST

Filed under: Car Buying, Government/Legal

With Congress on the verge of passing some kind of 'cash-for-clunkers' legislation, it's time to take a look at what cars are worth trading in for the scrappage credit and what models would be better to sell by other means. The good folks at Consumer Reports have come to the rescue. Obviously, a car that has a retail value greater than the corresponding rebate is not worth trading in unless you just can't be bothered to stick a For Sale sign in the window. The CR staff has examined the prices and concluded that pre-1993-94 Cadillac DeVilles, Eldorados and Sevilles are all solid candidates.

One surprise car on their list is the 2001 Lincoln LS V8. The LS was a well-regarded (if blandly styled) sedan in its time. Those looking for a good handling rear-drive alternative to a BMW 5-series would do well to consider one of these at their bargain basement used pricing, and we'd hate to see a good one sent to the crusher.

Perhaps unsurprisingly, CR's truck list is quite a bit longer than their car list, and it includes such winners as the pre-1996 Ford Aerostar and Isuzu Rodeo. Check out the whole list of clunkers-to-vouchers over at CR. Thanks to Richard for the tip!

[Source: Consumer Reports]

Consumer Reports lists clunkers to cash in on originally appeared on Autoblog on Tue, 16 Jun 2009 16:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Cash-For-Clunkers added to climate bill

Jeremy Korzeniewski — Wed, 20 May 2009 16:33:00 EST

Filed under: Car Buying, Government/Legal, Green

It seems that calls from House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) to fast track the Cash-For-Clunkers bill through the legislative process may have fallen on deaf ears. According to the Detroit Free Press, the somewhat controversial bill will be tacked on the much broader Climate Change bill that's currently being drafted by the House Energy and Commerce Committee.

Proponents for the Cash-For-Clunkers program are still pushing for the bill to acted on as separate from the Climate Change bill. Earlier this week, though, the House voted 50-4 in favor of adding the Cash-For-Clunkers amendment to the American Clean Energy and Security Act, which includes a provision to implement a carbon cap and trade plan in the United States. As such, that legislation is expected to take quite some time to navigate its way through the House and Senate, and it now seems likely to have its own Clunker in tow.

[Source: Detroit Free Press | Photo: meshmar2]

REPORT: Cash-For-Clunkers added to climate bill originally appeared on Autoblog on Wed, 20 May 2009 16:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments