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Winners and Losers direct from the Transportation Department:  The number one vehicle destroyed under the Cash for Clunkers program was the Ford Explorer which typically got 14 MPG.  The number one vehicle purchased under the Cash for Clunkers program was the Toyota Corolla which typically gets 27 MPG in the city and 35 MPG on the highway. |
'Cash for Clunkers' Results: Boosted the Economy and the Environment The government's plan to boost auto sales and the economy ended in August with nearly 700,000 clunkers taken off the roads, replaced by far more fuel efficient vehicles, like 58% more efficient. Rebate applications worth $2.877 billion were submitted by the deadline, nearly reaching the $3 billion provided by Congress to run the program. The Cash for Clunkers bill was under negotiations for months, finally passing 298 votes to 119, aiming for this kind of stimulation to increase both car sales and fuel efficiency. The results? A win:win program. Rep. Betty Sutton (D., Ohio), the bill's chief sponsor, said the bill showed that "the multiple goals of helping consumers purchase more fuel efficient vehicles, improving our environment and boosting auto sales can be achieved.'' Sen. Debbie Stabenow (D., Mich.), backed a similar version in the Senate. And U.S. Transportation Secretary LaHood, declared the program “wildly successful.” Analysts said the bill would encourage car shoppers but would not be a panacea for carmakers. With the U.S. auto industry struggling, total expected sales numbers for the industry are about 9.5 million vehicle sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007. Not so fast analysts. It has not only helped tens of thousands of consumers purchase new more fuel efficient vehicles, it is helping create jobs at dealers and automakers across the country. Because of the sales already completed, automakers including Ford and General Motors have announced increases in their North American production, putting more people to work building more fuel-efficient vehicles. The program also provided a lift to America’s automakers by not only helping clear inventory from CARS transactions but also driving up showroom traffic to levels not seen in well over a year. And for the environment, the overall increase of MPG in the new vehicles is 9.2 MPG, or a 58% improvement over the clunkers. Average Fuel Economy of the New vehicles Mileage: 24.9 MPG. Trade-in Mileage: 15.8 MPG. Cars purchased under the program are, on average, 19% above the average fuel economy of all new cars currently available. This means the program reflected higher fuel economy desires of the purchasers and raised the average fuel economy of the nation's fleet — all while getting the dirtiest and most polluting vehicles off the road.
The success of the Cash for Clunkers bill is being followed by still more environmental efforts. The EPA has just finalized the Greenhouse Gas Mandatory Reporting Rule, requiring reporting of greenhouse gas (GHG) emissions from suppliers of fossil fuels or industrial greenhouse gases and manufacturers of vehicles and engines as well as other large sources and suppliers in the United States. The Reporting Rule is intended to collect accurate and timely emissions data to inform future policy decisions. Under the rule, the suppliers, manufacturers and facilities that emit 25,000 metric tons or more per year of GHG emissions are required to submit annual reports to the EPA. The gases covered by the proposed rule are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexafluoride (SF6), and other fluorinated gases including nitrogen trifluoride (NF3) and hydrofluorinated ethers (HFE). The rule requires large emitters of heat-trapping emissions to begin collecting greenhouse gas (GHG) data under a new reporting system beginning January 1, 2010. This new program will cover approximately 85% of US GHG emissions and apply to roughly 10,000 facilities. The first annual reports for the largest emitting facilities, covering calendar year 2010, will be submitted to the EPA in 2011. Vehicle and engine manufacturers outside of the light-duty sector will begin phasing in GHG reporting with model year 2011. |
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