The Cash for Clunkers program, which is a part of the American Recovery and Reinvestment Act of 2009, is encouraging the sale of clean diesel vehicles as consumers are provided rebates to trade in their current cars for more fuel efficient models. “It’s completely exceeded our expectations,” said Sean Maynard of Volkswagen U.S. “Clean diesels have been 30 percent of our total sales over the past month.”
President Obama also issued a statement July 31applauding the “Cash for Clunkers” program and the boost it is giving the manufacturing sector. “This program has been an overwhelming success, allowing consumers to trade in their less fuel efficient cars for a credit to buy more fuel efficient new models,” Obama said. “It has given consumers a much needed break, provided the American auto industry an important boost, and is achieving environmental benefits well beyond what was originally anticipated.”
“We’re running out of stock of TDI clean diesels,” Maynard told Biodiesel Magazine. “We can’t sell these models fast enough.”
The National Highway Traffic Safety Administration reported, however, that the program’s funds could be exhausted because of overwhelming consumer demand. Regarding this situation, Dave McCurdy, CEO of the Alliance of Automobile Manufacturers made the following statement. “Alliance members urge the Administration to increase funding to this important program,” he said. “The very fact that we’re at this point just days into the program shows how effective these incentives have been. In addition to seeing an increase in sales of more fuel efficient vehicles with the latest safety enhancements, we’re seeing an increase in dealer traffic that will contribute to the wellbeing of automakers and the entire supply chain.”
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Amongst AAM members Ford Motor Co. reports a 9 mile-per-gallon (MPG) increase from trade-in vehicles to new vehicles purchased; General Motors Corp. reports a 54 percent increase in small car sales since the CARS program was launched; 57 percent of Mazdas sold so far under the program were highly fuel-efficient Mazda 3’s; Toyota’s top two CARS models—Corolla and Prius—average 39.5 MPG and accounted for nearly 40 percent of Toyota’s CARS sales mix. About 70 percent of their trade-ins have been vans, trucks and SUVs.