According to a Brookings evaluation of the Car Allowance Rebate System (CARS), more commonly known as Cash for Clunkers, the $2.85-billion program cost taxpayers $1.4 million for each of the 3,676 jobs created by it from June to December 2009. The White House reportedly estimated that the program would create 70,000 jobs. Additionally, the evaluation states that more effective alternative fiscal stimulus policies could have been implemented instead of CARS.
The U.S. federal government has put a lot of money into clean car companies this past year, including about $8.5 billion through U.S. Department of Energy's Advanced Technology Vehicle Manufacturing Program (Ford got $5.9 billion, Nissan $1.6 billion, Fisker Automotive $528.7 million, and Tesla Motors $465 million) and another $2+ billion for advanced batteries (some say it was more than that). There may be more coming down the pike.
Vice President Joe Biden will be delivering a speech on the economic recovery efforts that have been implemented thus far at the NextEnergy Center in Detroit on Wednesday. The Detroit News is reporting that Biden will be using the occasion to announce the first round of battery research grants from a $2 billion program that was part of the stimulus package passed earlier this year.
Last month, Germany reported a shocking 21 percent improvement in auto sales, and the greatest driver in the uptick was a used vehicle scrapping plan that pays drivers 2,500 euros ($3,150) to remove their old car from the road. With new car sales in most other countries down by at least that much, it was widely speculated that other governments would look closely at Germany's new system to see if it would be worth adopting in their areas.
When the big stimulus bill was passed this week, the number that rose to the forefront was a $2 billion investment for plug in vehicles. But, if you add in all the additional plug-in help for things like infrastructure, the actual plug-in stimulus package is closer to $12.5 billion, according to Plug In America's legislative director Jay Friedland. We've taken a look at some of these monies before, but Friedland made a nice list of exactly how much money is available for what. For example, the $
In light of the automaker benefits and car buyer assistance in the recently-passed stimulus package, analysts at R. L. Polk & Co. estimate there will be an average rebate of $330 for every vehicle sold this year. By allowing buyers to deduct the sales tax from a new vehicle purchase from their income taxes, Polks sees a sales increase of 94,000 units this year.
The economic stimulus bill just got a whole lot more interesting for automakers and car buyers alike, as a proposal to make interest on auto loans deductible has been voted in. The proposal, which was championed by the National Automotive Dealer Association, was voted in by a bi-partisan 71-36 vote. If the $800 billion stimulus bill passes the Senate and this provision survives, car buyers will be able to write off auto loan interest on their taxes, saving about $1,500 on a $25,000 car purchase.
North Dakota state rep. Lisa Wolf (D-Minot) has sponsored, with bipartisan support, an "emergency measure" in the legislature that if passed, could save ND car buyers some pretty decent money. The proposed legislation would eliminate the state's motor vehicle sales, excise, and use taxes on new rides purchased before June 30, 2010. Oh, yeah: there's a significant catch -- the tax break would only apply to vehicles from the Detroit 3. Tax breaks as a stimulus? No-brainer. But in this case, it's p
In the wake of the bridge loan to the General Motors and Chrysler last Friday from the TARP fund, US Senator Evan Bayh (D-IN) made a federal aid proposal of his own. Bayh is proposing that as part of a stimulus package early in 2009, Congress should include $1.63 billion in grants to help fund the build-out of US manufacturing capacity for advanced batteries, development of the batteries and intelligent grid technology to help support widespread use of electric vehicles. Not surprisingly, some o
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