Kyle’s Corner (FYI) - Federal program to move metal off lots

January 1, 6:41 PMAutomotive ExaminerKyle Busch

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Well, we all know about the tough shape the economy is
in. How long will it last, and what are lawmakers trying to
do to “help the situation?”

My sources tell me that Washington lawmakers are drafting
a large economic stimulus package to create jobs and rebuild
the country’s infrastructure. This sounds great, but what are
some of the details? Could it be time to literally drive for the
hills and enjoy doing it?

You see the lawmakers are considering a nationwide “scrap”
program that would provide tax dollars to consumers who
turn in their older cars to have them crushed and thus move
new vehicles off the lots.

At first, this might sound like a great idea! Would such
actions solve the current lack of new vehicle sales and
move metal off new car dealers’ lots? Furthermore, would
the country forgo the current push to build electric cars for
the future? After all, if consumers are driving “new vehicles,”
they do not need electric vehicles for possibly many years!

Would government intervention such as this “Cash for Clunkers"
program efficiently solve the US auto problem? Consider the
following:

Owners who turn in vehicles for crushing may well receive a
“minimal” payment (some consumers are desperate for cash in
this economy but would they end up taking on even more debt
by purchasing new vehicles?) to buy new vehicles.

The program could threaten car enthusiasts nationwide with the
loss of valuable parts and parts-cars for repairs, restoration, and
custom projects. As a result of this program, would America
actually destroy some of its car heritage?

The program may well reduce the availability of affordable
transportation and repair parts used by low-income drivers.
The program would also compete with charities like the
Salvation Army and the Purple Heart that rely on donated
vehicles.

Congress might better spend the money for this program
in helping private parties in their development of electric
vehicles that would bring the US truly long term benefits
including technical and green jobs.

Under this plan, the US might not get another chance to
embrace green automotive technology? Isn’t propping up the
auto industry what got us in the tough position we are in today?

My sources tell me that the stimulus package is being
drafted right now. House Speaker Nancy Pelosi (D-CA)
wants to introduce the bill on January 6th and have it approved
by Congress by January 20th so that President Obama can sign
it into law after he is inaugurated.

You can contact House Speaker Nancy Pelosi to give your
support or opposition to this bill at: 202 225-0100 or send
your electronic message at: http://speaker.house.gov/contact/

Should the free market work out the US auto problem or
should the Federal Government intervene? Let me know
what you think!  After all, it may in fact affect some of the
driving we love!

Kyle Busch is the author of “Drive the Best for the Price…” He
welcomes your comments or car questions at his auto web site: www.DriveTheBestBook.com