Cash For Clunkers
By: Import User
Updated: August 21, 2009
Car dealers expect heavy traffic in showrooms this weekend, now that word's out that Cash For Clunkers deals end Monday.
“I think its a great program, hate to see it end," said Alan Ray, General Manager for a Mitsubishi Dealer.
Customers had expected rebates offered until Labor Day at least.
"I think its a good program, too bad the money's running out," said customer Bruce Bonnivier.
But the Obama Administration acknowledged that two billion dollars added to Cash For Clunkers two weeks ago is draining fast.
On the radio, President Obama called it good news.
"We're now slightly victims of success because the thing happened so quick, there was so much more demand than anybody expected," said Obama.
The trouble for many dealers is sales are happening a lot faster than reimbursement.
Mike Jackson, Chairman and CEO of Autonation said, "We're probably owed about 45 million at this point."
"It was a great program, just not exactly the best execution from the government," said Honda Dealer Jeffrey Tamaroff.
Transportation Secretary Ray LaHood says he's tripled his staff to review dealers' claims.
"They're going to get their money, we have the money, Congress provided the money they're going to get their money,” said LaHood.
The program is credited with 450 thousand trade-ins…guzzlers for more fuel-efficient vehicles.
Some say it’s a proven economic jolt.
"When you sell a car is it puts trucking you know for raw materials. It puts suppliers to work, assembly lines to work, advertising on your station, it's good for everything," said William Golling, a Chrysler/Jeep/Dodge Dealer.
GM plans to re-hire more than 13-hundred workers, and carmakers have been paying overtime to boost production.
