The United States has never seen a ‘‘car-seva’’ like this one. Nearly 300,000 Americans across the country have lined up to trade in their gas-guzzling jalopies for new cars over the past fortnight under a government-subsidized program aimed at getting rid of inefficient vehicles, even as similar half-baked efforts in India spurred by activist courts seem to be lurching.
The Obama administration’s so-called ‘‘Cash for Clunkers’’ programme has been so successful that the $1 billion appropriated for it was in danger of running out this week (well before the anticipated end date of November 1) before law-makers funneled another $2 billion in an emergency measure on Thursday.
If the trade-in demand witnessed in the past two weeks remains on track, US will be on course to removing close to 750,000 inefficient vehicles from the roads under a programme originally called the Car Allowance Rebate System (CARS). Times of India
The programme, which gives consumers vouchers worth between $3,500 and $4,500 for trading in cars that get less than 18 miles per gallon for models that achieve at least 22 mpg, helped the US car industry to have its best month in almost a year in July.
“Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost,” President Barack Obama said.
The extra $2 billion approved this week could subsidise the purchase of more than 400,000 new cars as the big three US carmakers – Ford, Chrysler and General Motors – find themselves with unexpectedly lean inventories.
All three companies are now considering a boost in production that could create new jobs at manufacturing plants and at hundreds of dealerships.
Congress has extended the Cash for Clunkers scheme until early September but some industry analysts warn that its impact may not be as dramatic from now on because many of the customers who qualified for subsidies have already traded in their old vehicles. Irish Times
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