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CASH FOR CLUNKERS PROGRAM OUT OF DOUGH IN FOUR DAYS
Detroit Free Press - Four days after it launched, the popular cash-for-clunkers program has burned through its $950-million budget, sending the Obama administration scrambling to find additional money tonight and avoid a shutdown of the program.
Administration officials told Congress this evening that the plan would be suspended, triggering confusion and anger among thousands of dealers and car buyers across the country. Many dealers rushed to submit paperwork on pending trades, amid TV ads from automakers touting the program.
But a White House official denied late today that the program was suspended, and said all valid deals would be honored. Officials at both ends of Pennsylvania Avenue were seeking ways to send additional money to the program; the U.S. House was set to adjourn Friday for a month-long break.
Administration officials wouldn't say what the government would do if no money could be found Friday. A spokesman for House Speaker Nancy Pelosi said lawmakers "will be working with the congressional sponsors and the Administration to quickly review the results of the initiative."
The calls to suspend the plan, first reported by the Free Press, came after auto dealers warned the government that it was in danger of losing count of how many trades had been made. Since the program was to run as long as there was money left in the $950-million pool, dealers have been concerned the fund could run dry before they were reimbursed for all their deals — which requires them to junk the clunker.
Administration officials told Congress this evening that the plan would be suspended, triggering confusion and anger among thousands of dealers and car buyers across the country. Many dealers rushed to submit paperwork on pending trades, amid TV ads from automakers touting the program.
But a White House official denied late today that the program was suspended, and said all valid deals would be honored. Officials at both ends of Pennsylvania Avenue were seeking ways to send additional money to the program; the U.S. House was set to adjourn Friday for a month-long break.
Administration officials wouldn't say what the government would do if no money could be found Friday. A spokesman for House Speaker Nancy Pelosi said lawmakers "will be working with the congressional sponsors and the Administration to quickly review the results of the initiative."
The calls to suspend the plan, first reported by the Free Press, came after auto dealers warned the government that it was in danger of losing count of how many trades had been made. Since the program was to run as long as there was money left in the $950-million pool, dealers have been concerned the fund could run dry before they were reimbursed for all their deals — which requires them to junk the clunker.
posted by TPR | 11:27 PM
1 Comments:
Read this article: The Real Reason for the "Cash for Clunkers" Suspension. The ex car salesman blog shares exactly why they stopped the program. Even reports that some sales managers are calling asking for the money back because they were denied the rebate when the final paperwork was submitted but their car was already ruined by dumping a solution in the engine. They now have no car. Scary. See: http://tinyurl.com/ml9sdo
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