U.S. to shut down cash for clunkers at 8 p.m. Monday

[rickaren]

U.S. to shut down cash for clunkers at 8 p.m. Monday

Posted Friday, Aug 21, 2009, 11:04 am in Employee News

The U.S. government will shut down its cash-for-clunkers program at 8 p.m. Monday to keep car dealers and shoppers from claiming more than the $3 billion set aside for the program, Detroit Free Press reported.

The decision announced yesterday means that the program originally expected to generate 250,000 vehicle sales over three months will have likely triggered more than 700,000 in less than one month, the paper said. While accomplishing goals of destroying gas guzzlers and spurring the U.S. auto industry to boost production, the larger effects of the plan on the economy and environment will be debated for years to come, the Free Press said.

The program has proven so popular that the Obama administration has struggled to keep its growth in check, pushing an emergency $2-billion extension through Congress earlier this month when the plan burned through its original $1 billion in about a week, the paper said. Backers of the plan previously said they would not seek any additional money, and the White House reiterated that stance today, the Free Press said.

The U.S. Department of Transportation said $1.9 billion has been claimed so far through 457,476 transactions, but estimated dealers are likely sitting on an additional $400 million in deals that have yet to be submitted, the paper said. With the costs of overseeing the program likely close to $100 million, that would leave about $600 million available, the story said. (Detroit Free Press)