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"Cash for Clunkers" Scheme Draws Criticism

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Aftermarket News is reporting today that the Automotive Parts Remanufacturers Association (APRA) is voicing strong opposition to creating a nationwide “Cash for Clunkers” program, which lawmakers may be considering as part of any upcoming federal economic stimulus plan.

In California, we're familiar with "Cash for Clunkers" programs, in which the State uses tax dollars to purchase older cars from owners, and then destroys the vehicles.  The goal of the California program has been to remove "gross polluters" from the road as part of the State's strict Smog control regulations.

The APRA is against a federal program because the association argues that the programs ignore the valuable components that can be salvaged from older cars--such as the cores for AC compressors, alternators, brake master cylinders, and any number of additional salvageable parts that the industry can in turn remanufacture, otherwise recycle, and retail to owners looking to repair running older cars.

Remanufactured parts are a crucial part of aftermarket automotive repair, and this recycling of parts has numerous benefits within the industry and without.  I wonder what sort of balance can be struck between lawmakers and the APRA; clearly, a "Cash for Clunkers" program could be devised that allows value to be extracted from the claimed vehicle, thus allowing the industry to continue to create value while achieving an economic stimulus through a cash infusion to consumers and preserving the environment benefits of recycling.

What complexities am I missing?

Read the full article here.

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