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CASH FOR CLUNKERS
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June 8, 2009
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I rise today in support of H.R. 2751, the Consumer Assistance to Recycle and Save Act.
The Consumer Assistance to Recycle and Save Act would strengthen demand for automobiles in the United States and provide much needed relief to struggling car companies and dealerships. More commonly known as the ``Cash for Clunkers Act,'' this legislation would allow car owners to trade in their old inefficient automobiles for new more fuel efficient automobiles. The Cash for Clunkers Act could spur the sales of up to 1 million more fuel efficient cars and trucks. It would help to save jobs and shore up car dealerships, and it would help save more than 250 million gallons of gas a year.
Our national car companies are struggling in the floundering economy. Since last year ago, national car sales have fallen by 34 percent. Car dealerships across the nation are closing their doors, and it is estimated that in my home state of New Jersey 8,000 jobs in the automobile industry could be lost by the end of the year.
This legislation allows consumers to receive a voucher for $3,500 if they turn in their old car for a new automobile that is 4 miles per gallon more fuel efficient. Those who buy new models that are 10 miles per gallon more fuel efficient would receive a $4,500 voucher. Owners of sport utility vehicles, pickup trucks or minivans that get 18 miles per gallon or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 miles per gallon higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 miles per gallon higher than the older vehicle.
Programs like the Cash for Clunkers Act have proven effective in increasing car purchases; Germany enacted a similar measure that increased car sales by more than 20 percent. I urge my colleagues to support this legislation that would spur our economy and decrease dangerous greenhouse gas emissions.
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