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As a co-chair of the Congressional Auto Caucus, Fred has worked tirelessly on behalf of the domestic auto industry - which impacts one out of every ten American jobs, and one out of every four jobs in Michigan. Fred has worked very closely on a bipartisan basis with the entire Michigan Delegation in an effort to boost the auto industry and save Michigan jobs.
- Cash for Clunkers - The Consumer Assistance to Recycle and Save (CARS) Act, H.R. 2751
The first step on the road to recovery is to get folks back in the showrooms buying cars again, and “cash for clunkers” will do just that. On June 18, 2009, “cash for clunkers” cleared its final hurdle and now awaits the President’s signature. Cash for clunkers’ is a jobs bill that will provide a much-needed boost to the auto industry and our region’s overall economy. Folks would much rather be working and paying taxes than be unemployed and drawing benefits, and “cash for clunkers” will help keep folks on payrolls across the region.
Under the legislation, consumers may trade in their older, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. Customers would trade in a car that has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon and is a model year of 1984 or newer. If you buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one, you’ll get a $3,500 voucher. If the new vehicle gets at least 10 mpg better, consumers will receive the full $4,500. Once the vehicle has been turned in, it can be stripped for parts except for the engine block, before it is destroyed. Vehicle mileage ratings back to 1985 can be found at www.fueleconomy.gov.
New car sales will provide needed revenues to ailing state budgets from sales tax, registration and other fees. This plan could result in up to $2 billion of sales tax revenue for states. Also, by Energy Department calculations, a customer who trades in an 18 mpg vehicle for one that gets 30 mpg could save about $780 per year. The program will commence within 30 days of the President signing the measure into law.
- Providing much needed capital for auto makers to retool
In December of 2008, Fred worked to secure $17.4 billion in low-interest loans available for our domestic automakers to enable them to retool their facilities and build the next generation of greener vehicles that will surely be at the top of their class. Immediately following the Senate failure to consider the loan package, Upton called on the White House to make the funds available through the Troubled Asset Relief Program (TARP).
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