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ASA Opposes Clash for Clunkers Program

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May 1, 2020—The Automotive Service Association (ASA) is urging auto repair operators and others in the industry to oppose a proposed idea of the "Cash for Clunkers" program brought into the economy, according to a press release.

According to the release, some auto manufacturers have proposed reviving the Obama Administration's Cash for Clunkers initiative, which paid the owners of older vehicles as much as $4500 to help stimulate the economy in the summer of 2009. During this short period of time, approximately 700,000 post-warranty vehicles were taken off U.S. highways and out of independent repair shops. Both the U.S. Government Accountability Office (GAO) and respected research institutions have raised questions about the effectiveness of the Cash for Clunker program which cost U.S. taxpayers almost $3 billion.

Recently, at least two auto manufacturers have floated the idea of a "Cash for Clunkers" program to be included in the next COVID-19 stimulus legislation in order to boost vehicle sales.

The Automotive Service Association (ASA) opposed Cash for Clunkers program when considered during the Obama Administration and is encouraging Congress to reject a new Cash for Clunkers program in the next COVID-19 stimulus package.

Further, the ASA is urging its members to send a letter to their members of Congress urging them to oppose a Cash for Clunkers program in the next phase of COVID-19 stimulus legislation.

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