White House Says Cash for Clunkers Is Up and Running
July 31, 2009
The White House insists the too-successful Cash for Clunkers program, despite running out of money, remains up and running Friday and
will continue to operate through the weekend as the administration seeks additional funding for it.
White House Press Secretary Robert Gibbs told reporters the Car Allowance Rebate System (CARS) program remained "up and continuing to run," according to Politico.com. For those intending to buy a car over the weekend, "the program will be in place," Gibbs said.
But Gibbs did say the administration is trying to find additional funding for the program even as Congress recess for the August break. Congress reportedly is voting Friday on an additional $2 billion for CARS. An update is expected later in the day.
Meantime, the Department of Transportation that administers CARS is advising automakers and dealer organizations that their dealers should carry on with Cash for Clunkers.
On Thursday night, Congressmen, dealer groups and automakers were told the program could be suspended either permanently or temporarily because it had maxed out its $1 billion in funding. Some television reports had the program being suspended at last night.
Not so, dealer organizations and automakers are advising their dealers. The Department of Transportation, which is administering CARS, told them:
- CARS is not suspended;
- clunker transactions should continue and all deals concluded before a suspension is announced -- if it occurs -- will be honored;
- an update is expected Friday;
- as of Friday morning, $250 million worth of vouchers is committed based on submitted transactions;
- the DOT's National Highway Traffic Safety Administration, which runs the program, is doubling the number of personnel reviewing the transactions to speed up the reimbursement process;
- automakers are advised to press dealers to take time to file complete and accurate reimbursement requests with the agency. Many are being rejected because of basic mistakes and omissions that are easily corrected but when re-submitted, the requests go to the back of the line. -- By Michelle Krebs
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