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Wednesday, January 07, 2009

ALERT: Federal "Cash for Clunkers" Program Threatens Your Hobby


Some Washington lawmakers are hoping to create a new nationwide scrappage program which would give U.S. tax dollars to consumers who turn-in older cars to have them scrapped.

Summit Racing Equipment and the more than 6,800 member companies of SEMA (Specialty Equipment Market Association) are urging lawmakers to have this potential new program scrapped instead.

The new scrappage program, dubbed "Cash for Clunkers," would be part of a new economic stimulus package to help create jobs and is specifically designed to spur new car sales. The stimulus package is being drafted right now, and House Speaker Nancy Pelosi (D-CA) wants to introduce the bill on January 6, and have it approved by Congress by January 20, so that incoming President Barack Obama can sign it into law immediately. Here's why the scrappage program should not be included in the stimulus package:

• Owners who turn in vehicles for crushing would receive a "minimal" payment to purchase a new car.

• Since many of these cars are sitting in garages or storage, the program is a misguided attempt to claim the country's air quality or fleet fuel mileage is being improved.

• The program would deny small business in the specialty automotive industry the availability of older cars necessary to develop new products and services.

• "Cash for Clunkers" would risk the destruction of classic, historic, and special-interest vehicles.

• "Cash for Clunkers" would reduce the availability of affordable transportation and repair parts used by low-income drivers.

• The program ignores better policy options--repair and upgrade is a win-win for consumers, dealers, manufacturers, and repair shops.

• The program would reduce the amount of parts and parts-cars available for repair, restoration, and customization projects.

What Can I Do?
Please help us and fellow enthusiasts by expressing your opposition to the "Cash for Clunkers" scrappage program. Contact House Speaker Nancy Pelosi IMMEDIATELY at 202-225-0100 or click here to send an electronic message: http://speaker.house.gov/contact/.

Here are some important talking points:

• I am [calling/writing] to urge lawmakers not to include a “Cash for Clunkers" provision in the economic stimulus bill. Owners who turn in vehicles for crushing would receive a "minimal" payment to purchase a new car. This is a misguided attempt to spur car sales and claim that the country's air quality or fleet fuel mileage is being improved.

• I work for [company name] located in [city and state]. My company is part of the specialty automotive industry, an industry which enables consumers to enhance their vehicle's appearance, performance, comfort, convenience and safety. “Cash for Clunkers" programs deny our small businesses the availability of older cars necessary to develop and market their products and services. The programs will hurt my company and our customers.

• “Cash for Clunkers" programs threaten enthusiasts nationwide with the loss of valuable parts and parts-cars for repair, restoration, and customization projects. The programs also risk destroying classic, historic and special-interest vehicles, our American heritage.

• Cars turned in for scrappage often barely run, or are rarely-driven second or third vehicles that have a minimal impact on overall fuel economy or emissions.

• “Cash for Clunkers" programs will reduce the availability of affordable transportation and repair parts used by low-income drivers. It will also compete with the Salvation Army, the Purple Heart and other charities that rely on vehicle donations to raise money.

• “Cash for Clunkers" ignores better policy options. If Congress wants to act, support for repair and upgrade is a better choice and a win-win for consumers, dealers, manufacturers and repair shops. Significant emissions and fuel economy improvements can be achieved in older vehicles through relatively simple and inexpensive means: repaired/replaced exhaust systems, tune-ups, etc.

• We hope we can count on you to reject “Cash for Clunkers." Thank you for your consideration on this very important matter.

If you choose to send a message to Speaker Pilosi, please send a copy of your message to SEMA at:
E-mail: briand@sema.org
Fax: 202/783-6024

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