White House: 'Cash for clunkers' good thru weekend

The Obama administration promised Friday that the financially strapped "cash for clunkers" program would be alive at least through the weekend.

"If you were planning on going to buy a car this weekend, using this program, this program continues to run," White House Press Secretary Robert Gibbs told reporters.

Democrats in the House and Senate were exploring the possibility of votes as early as Friday to replenish the funding for the hugely popular program.

Reps. Sander Levin, D-Mich., and Betty Sutton, D-Ohio, said the House planned to consider the additional funding after lawmakers from the two states were assured by Transportation Secretary Ray LaHood that the program would continue while the Obama administration looked for more money.

John McEleney, chairman of the National Automobile Dealers Association, said many dealers have been confused about whether the program will be extended and for how long. Many stopped offering the deals Thursday after word came out that the funds available for the refunds had been exhausted.

"We are hoping for some clarity from the White House and Congress before the day is over," McEleney said Friday.

Carmakers and dealers have booked expensive advertising to capitalize on buyers' interest in CARS, and now will be left promoting a tie-in with an uncertain government program — one that wasn't supposed to end until Nov. 1. "Disappointed," said Chrysler spokesman Scott Brown.

"It's too late to recall the ads," says Beau Boeckmann of Galpin Ford, the nation's largest Ford dealer, in Los Angeles. Galpin had done about 100 clunker deals and was hoping for more. " We had increased our ad budget to get the word out. We are very heavy on radio, newspaper and getting direct mail together," Boeckmann says.

"Now what do you tell people when they walk in" for a clunker deal? "It's tough."

Members of the Ohio and Michigan congressional delegations huddled on Capitol Hill to discuss ways to keep the popular program alive.

Sen. Carl Levin, D-Mich., said it wasn't clear when a Senate vote would be held.

Sen. Debbie Stabenow, D-Mich., said about 40,000 new vehicles had been purchased through the program but dealers estimate another 200,000 vehicles have been sold in transactions that have not yet been completed.

One participant in the Capitol Hill meeting said they were examining possible funding sources and whether there were any glitches in the computer system. The participant, who spoke on condition of anonymity because of the sensitivity of the talk, said they were also studying how many dealers had enrolled in the system.

Through Wednesday afternoon, more than 23,000 dealer franchises were participating, according to the National Highway Traffic Safety Administration.

The administration dispatched Brian Deese, a top adviser to the Treasury's auto task force, to the Hill meeting.

On Thursday, word that the program was suspended came from Bailey Wood, legislative director for the National Automobile Dealers Association (NADA), which had been called Thursday night by the National Highway Traffic Safety Administration, which administers the program. Rep. Candice Miller, R-Mich., confirmed the suspension as well, saying she had been told by congressional leaders.

But White House spokesman Robert Gibbs said later Thursday that the administration is "evaluating all options" and not suspending the program, causing confusion about its status.

Page
  • 1
  • |
  • 2
  • |
  • 3
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...