Contact:	Clarence Mills (202) 543-1440 c.mills@att.net
For Release:	Immediate News Bulletin PR-24 March 19, 2009

Cash for Clunkers Program Introduced in U.S. House

Vehicles Must Be Built in North America To Qualify for Incentive

WASHINGTON, D.C., March 19, 2009 - U.S. Rep. Betty Sutton, D-Ohio, has introduced House Bill 1550, the Consumer Assistance to Recycle and Save (CARS) Act, in an effort to replace older, less-fuel-efficient vehicles with newer, more-fuel-efficient vehicles - thus spurring new car sales. This fleet modernization program is unique in that incentives will only be offered to consumers who purchase vehicles that are built in North America. Princeton University's Dr. Alan Blinder, in a New York Times article published in 2008, referred to this policy option as "Cash for Clunkers" - government payments to remove older, less-fuel-efficient or high-polluting vehicles from America's highways.

The CARS Act will offer $3,000 to $7,500 vouchers to owners of vehicles that are at least eight years old to purchase more fuel-efficient vehicles. The vouchers are based on miles-per-gallon, and vary depending on where they were built. To promote American cars built domestically, cars built in the United States must get at least 27 miles per gallon on the highway, while those built in Canada or Mexico must get at least 30 miles per gallon to qualify for the program.

The Automotive Service Association (ASA) supports a Cash for Clunkers Program if it includes these following important points:

• Includes a vehicle repair option for consumers.

• Programs should be administered by the states.

• Vehicle participation should be tied to emissions and improving air quality.

• Repair cost allowances should be sufficient to address emissions repairs.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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