Ford of Canada has launched a car scrappage program that expands on a previous government-run program to get even more older vehicles off the road. While the government program only paid for cars from 1995 and earlier to be scrapped, Ford is accepting cars up to model year 2003.
The hotly-debated Cash for Clunkers legislation is on its way to President Obama's desk tonight, oddly enough as part of a larger bill that will continue funding the military efforts in Iraq and Afghanistan. After a late Republican-backed effort to halt the passage of the bill failed, the Senate voted 60-36 to approve the legislation after some last minute phone calls from the President swayed a few swing voters. It seems extremely likely that President Obama will sign the bill into law in short
House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) have said they would like to fast track the Cash for Clunkers bill through the legislative process. There's a legitimate fear that new car sales will stagnate while buyers wait for the bill to pass, which could take a very long time if it's attached to the much broader climate change legislation. Says Reid:
According to The Detroit News, House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) have said they would like to fast track the Cash-for-Clunkers bill through the legislative process. There's a legitimate fear that new car sales will further stagnate while buyers wait for the bill to pass, which could take a very long time if it's attached to the much broader climate change legislation. Says Reid:
It's looking increasingly likely that the United States will soon have its own Cash for Clinkers program. Two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.
It's looking increasingly likely that the United States will soon have its own Cash-for-Clunkers program. According to The Detroit News, two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.
Take a walk through any junkyard in the world and you're likely to come across any number of vehicles that are a mere rusted-out shell of their former selves. That's mostly because sheet metal is thin and, as the outer-most skin of an automobile, takes the brunt of the weather's nastiest beatings. Underneath, it's a different story entirely.
Reports indicate that government officials in the United Kingdom are contemplating the launch of a vehicle scrapping scheme modeled after the successful German program, which has boosted sales in Europe's largest market by over 20% in each of the two months it's been available. Details of the U.K. program are still sketchy, with some outlets like the Times of London and the BBC suggesting that the scrapping scheme will be included in the government's April 22nd budget. The Telegraph, however, re
As reported a few weeks ago, Germany has said "yes" to extending its scrapping program. The program pledged €1.5 billion to be given out in €2,500 increments to those scrapping their old cars in order to buy new ones. The program extension adds another €3.5 billion and will be available to buyers until the end of 2009. So far 1.3 million people have applied for the incentive, the extra funds will allow a total of 2 million to take advantage. Thanks for the tip, Gregg!
Last month, Germany posted a whopping 40 percent increase in new car sales, an improvement over February's 21.5% gain that is again being attributed to that country's vehicle scrapping program. Similar programs in Italy and France have also reversed the trend of falling sales figures.
If Britain follows Germany's lead and adopts a scrap-your-old-car incentive, it looks like the first company to pounce will could be Romania's Dacia. Renault, which owns Dacia, had planned to launch its brand in the U.K. last summer, but then backtracked.
Germany recently began a scrapping incentive program that gives buyers €2,500 to get rid of their old cars and buy new ones. The plan helped create a 21% jump in car sales during the month of February, even though the plan didn't take effect until February 20. It was the kind of success that has both the UK and the U.S. mulling over such a program, and has Germany considering doubling the incentive plan by adding another €1.5 billion of government money.
Encouraged by the success that Germany has enjoyed in spurring new car sales through its vehicle scrapping program, officials for the Society of Motor Manufacturers and Traders in the United Kingdom are pushing their government to institute a similar plan as quickly as possible. Sales in the UK were down nearly 22% in February and are off by almost a third so far in 2009. Germany, on the other hand, managed to score a sales increase of 21% last month due in large part to incentives that pay new