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Move Cars Off Lots
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Written by Clay H. Jimenez   
Tuesday, 14 July 2009
Auto sales are down 34% from one year ago a 27 year low. The global credit crunch has seized domestic and non domestic auto companies alike. Compared with April 2008, General Motors, Chrysler and Ford sales have dropped by 34%, 48% and 31%, respectively. In the U.S., Toyota's sales have also plunged 42%. As a result, we have seen tens of thousands of jobs lost across America and many thousands more are at risk.

The loss of jobs is not only at manufacturers and suppliers. Auto dealers, many small business owners, are being ruined by this financial crisis. Because vehicles are not selling, dealers are forced to lay off workers: sales people, mechanics and office staff. The average dealership employs 53 people that's almost 160,000 nationwide, more than the combined U.S. workforce of GM and Chrysler.

Moreover, local dealerships have cut spending on advertising, which hurts newspaper, radio and television revenue at a time when those local businesses are already suffering. Beyond that, there are customers who need to purchase a new work truck or family car but, even with good credit ratings, cannot get financing during this credit crunch.

The Drive America Forward Act would help change that picture by filling showrooms with customers and moving cars off lots. It would give American consumers a voucher up to $4,500 toward the purchase of a new car or truck using funds already budgeted under the recovery package. To qualify, the new vehicle would have to be more fuel efficient than your current one. Similar programs in Europe have boosted sales over 20%.

This legislation can provide the kind of immediate result that we need in America to help Main Street; to keep people working and lend a hand to Americans trying to make ends meet. At the same time, we will remove older vehicles from our roads, replace them with more fuel efficient models and reduce America's dependence on foreign oil.

Sen. Debbie Stabenow, D Mich., is preparing legislation giving consumers vouchers to trade in for new cars.
Last Updated ( Tuesday, 14 July 2009 )