Congressman John D. Dingell

May 5, 2009

Washington, DC - Congressman John D. Dingell (D-MI-15) made the following statement concerning the announcement by the White House that members of the House of Representatives have reached agreement on a fleet modernization, or “cash-for-clunkers,” proposal:

“Today’s announcement that my colleagues in the House of Representatives and I have struck an agreement on a vehicle fleet modernization program could not have come at a more opportune time. By stimulating consumer demand for new vehicles, this proposal will directly benefit domestic autoworkers and automotive manufacturers, which have arguably been hardest hit by the current economic downturn.

“I offer praise and thanks to my friends, Reps. Waxman, Markey, Inslee, Sutton, and Stupak, for the long hours they have dedicated to crafting a common-sense, workable fleet modernization proposal.  I thank them for having included me in negotiations on the proposal, which were characterized by collegiality and a great willingness on all sides to achieve prudent compromise. 

“Under this proposal, consumers will be able to trade in their old, fuel-inefficient vehicles for vouchers to help pay for newer, more efficient ones.  This proposal’s requirement that new cars and trucks achieve demonstrably greater fuel economy levels than trade-in vehicles will ensure federal funds support a national fleet modernization plan that results in meaningful reductions in energy use by American drivers.  In addition, this program will spur consumer demand for new vehicles, thereby injecting much-needed cash into our ailing domestic automakers.

“I look forward to working with my colleagues in the House and Senate, as well as the Administration, to enact this proposal into law.  Seldom are programs put into effect that serve consumers, protect the environment, and stimulate industrial recovery.  I urge my colleagues to support this critically important and sensibly balanced proposal.”

The Details - “Cash for Clunkers” Agreement

Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks.  The program will be authorized for up to one year and provide for approximately one million new car or truck purchases.  The agreement divides these new cars and trucks into four categories.  All mpg below relate to the values displayed on new vehicle window stickers.

• Passenger Cars:  The old vehicle must get 18 mpg or less.  New passenger cars with mileage of at least 22 mpg are eligible for vouchers.  If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500.  If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Small Trucks (and SUVs):  The old vehicle must get 18 mpg or less.  New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers.  If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500.  If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Large Light-Duty Trucks:  The old vehicle must get 18 mpg or less.  New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers.  If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500.  If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
• Work Trucks:  Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class.  There will be a finite number of these vouchers based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality.  Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.

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