News from Congressman Dale E. Kildee
For immediate release
June 9, 2009
Contact: Erin Donar
202-225-3611
 
 
Kildee Statement on “Cash for Clunkers” Legislation
 
 
Washington, D.C. – Today, Congressman Dale E. Kildee (D-MI), Co-Chair of the Congressional Automotive Caucus, spoke on the floor of the House of Representatives in favor of H.R. 2751, the Consumer Assistance to Recycle and Save Act, or the “Cash for Clunkers” Legislation. With Congressman Kildee’s support, this legislation passed the House by a margin of 298 to 119. Congressman Kildee’s statement is as follows:

“I rise today in strong support of H.R. 2751, the Consumer Assistance to Recycle and Save Act. This bill will provide incentives for the purchase of new, more fuel efficient vehicles, helping to revitalize our auto industry, preserve jobs and clean up our environment.

The need for this bill could not be greater. As we all know too well, our domestic auto industry has been suffering a prolonged downturn - and our families are feeling the effects.   The recent bankruptcy filings by Chrysler, General Motors and others, further underscore the critical need for action.

H.R. 2751 will provide consumers with up to $4,500 in vouchers for trading in their old vehicles and purchasing new, more fuel efficient models. Not only will this provide a much needed boost to the auto industry, including manufacturers, dealers and suppliers, but it will help preserve jobs in our communities.

Additionally, we will be working to clean up the environment while reducing our demand on foreign oil.     
          
I have always said that what America drives, drives America, and I am committed to a strong and vibrant domestic auto industry. This legislation will help us get through this difficult time and help get our auto makers back on the path to being the economic engine that has driven the American economy.”


Background Information on H.R. 2167

Under the program, consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks.  The program will be authorized for up to one year and provide for approximately one million new car or truck purchases.  The agreement divides these new cars and trucks into four categories.  Miles per gallon figures below refer to EPA “window sticker” values.

•    Passenger Cars:  The old vehicle must get 18 mpg or less.  New passenger cars with mileage of at least 22 mpg are eligible for vouchers.  If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500.  If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

•    Light-Duty Trucks:  The old vehicle must get 18 mpg or less.  New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers.  If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500.  If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

•    Large Light-Duty Trucks:  New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers.  If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500.  If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
 
•    Work Trucks:  Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class.  There will be a finite number of these vouchers, based on this vehicle class’s market share.  There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality.  Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.
 
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