"Accelerated Retirement of Inefficient Vehicles Act

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scottm
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"Accelerated Retirement of Inefficient Vehicles Act

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Pass this along!

From the Texas Vehicle Club Council:

Some information contained herein re-published from www.semasan.com.

In checking the SEMA website, Willis Bell discovered some interesting
information.

First, the "Cash for Clunkers" proposal was deleted from the House's
version of the 2009 Stimulus Plan. This was the result of the many
contacts Ms. Pelosi's office received opposing this part of the
proposed stimulus plan. Thank you!

Second, a different version of this plan is in the Senate's version of
the proposed 2009 Stimulus Plan. It targets light truck and SUV
vehicles which don't meet certain fuel economy levels. Its focus is
not on older vehicles, but vehicles which are more "gas guzzlers"
rather than "clunkers". This bill is $8B with varying amounts for
different vehicles, with projections of 4 million vehicles coming into
the program. Once in the plan, the vehicles can't be resold. This is
in S. 247.

SEMA eNews, Vol. 12, No. 4 - Jan 29, 2009

Politicians Want to Use Tax Dollars to Crush Newer-Model Trucks and SUVs

SEMA Warns Lawmakers This Boondoggle Will Cost American Jobs

SEMA is opposing an effort by some Washington lawmakers to include a
national car crushing program in the upcoming economic stimulus
package. Vehicles targeted for the scrap pile will likely include
Chevy Blazers, Silverados, S-10s and Tahoes; Dodge Dakotas and Rams;
Ford Explorers and F-Series; Jeep Cherokees and Wranglers; and any
other SUV or truck that obtains less than 18 mpg.

Under the plan, the federal government would pay a premium for '99 and
newer cars. Click here to oppose the legislation
(http://www.semasan.com/main/main.aspx?id=62505).

The so-called "Accelerated Retirement of Inefficient Vehicles Act" is
"Cash for Clunkers" with a twist. Instead of focusing exclusively on
old cars as is typical with scrappage programs, this bill will target
any vehicle with lower fuel-economy ratings. Participants will receive
a cash voucher to purchase a more fuel-efficient new car or used car
(model year 2004 or later) or receive credit for the purchase of
public transportation tickets.

Under the legislation, "fuel efficient" means at least 25% better
mileage than the CAFE standard. It will be illegal to resell the
scrapped vehicles. Bill sponsors want to destroy 4 million pickups and
SUVs over the next four years.

The program will fail to achieve its goal of improving fuel efficiency
and stimulating car sales, but will increase unemployment and the cost
of used cars and parts. Here's why:

a.. Given the minimal $1,500-$4,500 voucher value, the program will
lure rarely driven second and third vehicles that have minimal impact
on overall fuel economy and air pollution. This is not a wise
investment of tax dollars.
a.. The program will reduce the number of vehicles available for
low-income individuals and drive up the cost of the remaining vehicles
and repair parts. This is a basic supply-and-demand reality.
a.. The program will remove the opportunity to market specialty
products that are designed exclusively for the targeted pickups and
SUVs, including equipment that increases engine performance and fuel
mileage. Congress will be enacting a program to eliminate jobs and
reduce business revenues in the automotive aftermarket.
a.. The idea that the trucks and SUVs must be scrapped in order to
save energy is irrational. The program's "carbon footprint" does not
factor in the amount of energy and natural resources expended in
manufacturing the existing car, spent scrapping it and manufacturing a
replacement car.
a.. The program fails to acknowledge driver needs, such as the
ability to transport a family, tow a trailer or rely upon the
performance, safety and utility characteristics associated with the
larger vehicles. Instead, these vehicles will be destroyed.
a.. There is no evidence that the program will achieve the goal of
boosting new-car sales or increasing fuel mileage. Many states have
considered scrappage programs in the past as a way to help clean the
air or increase mpg, but abandoned the effort because they simply
don't work. The programs are not cost-effective and do not achieve
verifiable fuel economy or air-quality benefits.
a.. The program will hurt thousands of independent repair shops,
auto restorers, customizers and their customers across the country
that depend on the used-car market. This industry provides thousands
of American jobs and generates millions of dollars in local, state and
federal tax revenues.
"Our members, like all business entities, are suffering the effects of
the stalled economy," said Steve McDonald, SEMA vice president of
government affairs. "In fact, for our members that market product for
newer vehicles, we depend on a thriving and vibrant auto industry to
create new business opportunities. We support efforts to spur new-car
sales. We don't, however, support public policy efforts that we are
convinced don't work and will waste tax dollars in the process."

SEMA Urges You to Oppose This Legislation

Two lawmakers-Senator Diane Feinstein (D-CA) and Representative Henry
Waxman (D-CA)-need to hear from SEMA members that their vehicle
scrappage legislation is a waste of U.S. taxpayer dollars that will
cost American jobs in the specialty auto market.
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