SEMA opposes Federal purchase of Inefficient Cars to Stimulate Economy Blog Post at Automotive.com
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SEMA opposes Federal purchase of Inefficient Cars to Stimulate Economy

Posted February 5 2009 04:09 PM by staff 
Filed under: Opinion, Chevrolet

We have been reporting in this blog that the federal government is considering legislation that would retire older cars by paying their owners money that they can use toward a new vehicle. It is called “Cash for Clunkers.”



Now the Specialty Equipment Market Association (SEMA) is voicing its opposition to a bill called “Accelerated Retirement of Inefficient Vehicle Act. The organization fears that this legislation, should it become law, will allow the “retirement” of inefficient vehicles like pickups (Chevrolet Blazer, Silverado, S-10, and Tahoe; the Dodge Dakota and Ram; the Ford Explorer and F-Series;) and SUVs (the Jeep Cherokee and Wrangler and other SUVs). Owners of these vehicles would get a voucher they can use toward the purchase of a fuel efficient vehicle. This is defined as a vehicle that has at least 25 percent better fuel economy than the CAFE standards.

SEMA offers several arguments against the legislation. First, it says that the minimal voucher will have a value of only $1,500 to $4,500 and that would attract owners of rarely driven vehicles that have very little impact on the fuel economy of the nation or on air pollution. Second, it would reduce the number of vehicles available to the poor and drive up the cost of the vehicles that remain on the market. Third, the “retirement” of these vehicles will effect companies that manufacture and sell aftermarket products that are designed for these specific vehicles.

Here’s my two cents. The “retirement” of vehicles should be limited to old “clunkers” that spew out excessive carbon dioxide and does not achieve fuel efficiency due to their age. Newer vehicles like pickup trucks and SUVs should not be included simply because their fuel efficiency is not quite what some people would like. Come on people. There has to be some rationality here. For example, there are large families that need SUVs. These vehicles because of their size are a necessity to some. Moreover, as has been shown in a variety of demographic studies of people who buy pickups, the pickup buyer is one who uses his vehicle for work or to haul large items. Again, there is a market out there who consider these vehicles a necessity, not a toy.




COMMUNITY COMMENTS
TinaM.   (February 6 2009 11:00 AM)

I agree with your point of view - we are thinking on the same level. Another thing that worries me is how this may effect those like me who restore old "clunkers" as a hobby and those who do it as an come-based side job. I think it will drive up the cost of both new and used cars, as well.
 
sarahsmile90   (February 8 2009 08:15 PM)

SEMA raises some valid questions here. But hey nobody said this was going to be easy. I think my main concern is the cost of future new cars and will anyone be able to afford them?
 
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