SCRAP: USA scheme?
April 16th, 2009 by Richard Aucock
PROPOSALS to introduce a new car scrappage scheme in the US have just been tabled by Congress.
The mooted new car scrap scheme would give buyers $5000 if they scrap an 8 year old car for a new one.
Called the ‘Consumer Assistance to Recycle and Save’ bill – CARS Act – Republican Betty Sutton told the Detroit News paper that a scheme similar to the proposed UK new car scrappage scheme would have many benefits.
‘Consumers will finally get a break to purchase more fuel-efficient vehicles,’ she explained.
What’s more, ‘we will all benefit from a reduction of CO2, and the auto industry will get a jumpstart to spur sales.’
The main proviso would be buying a more economical car than the one they’re trading in. Cars would have to cost $35,000 or less – and there would be bigger incentives for cars made in North America.
Up to $5000 would be offered, as opposed to $4000 for cars built outside the US.
The Detroit News reported the proposals already have industry support. Former GM chairman and CEO Rick Wagoner said that ‘these kind of programs can have a huge impact.’
‘It would be very helpful to have something like that here in the United States.’
Such a scheme would also help US car makers meet Government demands for fuel economy improvements – of at least 40 percent by 2020, to a fleet average of 35mpg.
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