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Successful wind down of Cash For Clunkers Program

Transportation Secretary Ray LaHood said that the “ Cash for Clunkers” program which had been a wild success would be closed by August 24. The program had helped consumers to avail as much as $4,500 discount for trade in for better efficient fuel vehicles had helped auto industry in America to increase their sales, create jobs for thousand of American and helped to revive US economy, although it had come under criticism by auto dealers who complained of low disbursement. The department of Congress said that car dealers and customer’s deadline will give entire purchases and also submits applications for discounts from the remainder of the $3 billion. The agency said its adding employees to assist process claims faster and traders have criticized of trouble running their businesses while awaiting payment in the program. LaHood said further in a statement that the cash for clunkers program has been a salvation to the automobile industry. The agency added that they do not accept the applications after New York time after 8P.M. The Transportation Department said earlier that it has handled 167,000 or 37% of the 457,476 trader requirements for reimbursements submitted as of today. A senior administration official said on a call with reporters that $145 million has been paid out so far to traders. Wind-Down Plan :- National Automobile Dealers Association dealer group met with Transportation Department some time back to talk about concerns that reimbursement delays add to the load of retailers of trying to get better from a sales sprawl. It also pleaded the agency to outline an arrangement to wind down the effort so that retailers know when to end accepting trade-ins. Representative Joe Sestak, a Pennsylvania Democrat, last week said that the effort by NADA had paid traders for only 2 percent of their claims. The program is formally known as the Car Allowance Rebate System, or CARS. Lahood was asked by Senate Majority Leader, Harry Reid, a Nevada Democrat in a letter to speed reimbursements has said that “traders have been required to successfully finance the CARS coupons for customers up till the traders are repaid by the federal government could finally make up for some of the advantages of the program. Training Workers:- LaHood further said that there had been around 1,000 people who have got processed their applications that evaluate with fewer than 200 when the program began. The agency also by using Citigroup Inc. is providing necessary training to its staff to handle the paperwork. Robert Gibbs, White House press secretary, said to reporters at a briefing that “they are doing everything to accelerate the processing of the applications in a program that’s been flourishing, for customers, traders, makers and workers. Transportation Secretary Ray LaHood said that the “ Cash for Clunkers” program which had been a wild success would be closed by August 24. The program had helped consumers to avail as much as $4,500 discount for trade in for better efficient fuel vehicles had helped auto industry in America to increase their sales, create jobs for thousand of American and helped to revive US economy, although it had come under criticism by auto dealers who complained of low disbursement. The department of Congress said that car dealers and customer’s deadline will give entire purchases and also submits applications for discounts from the remainder of the $3 billion. The agency said its adding employees to assist process claims faster and traders have criticized of trouble running their businesses while awaiting payment in the program. LaHood said further in a statement that the cash for clunkers program has been a salvation to the automobile industry. The agency added that they do not accept the applications after New York time after 8P.M. The Transportation Department said earlier that it has handled 167,000 or 37% of the 457,476 trader requirements for reimbursements submitted as of today. A senior administration official said on a call with reporters that $145 million has been paid out so far to traders. Wind-Down Plan :- National Automobile Dealers Association dealer group met with Transportation Department some time back to talk about concerns that reimbursement delays add to the load of retailers of trying to get better from a sales sprawl. It also pleaded the agency to outline an arrangement to wind down the effort so that retailers know when to end accepting trade-ins. Representative Joe Sestak, a Pennsylvania Democrat, last week said that the effort by NADA had paid traders for only 2 percent of their claims. The program is formally known as the Car Allowance Rebate System, or CARS. Lahood was asked by Senate Majority Leader, Harry Reid, a Nevada Democrat in a letter to speed reimbursements has said that “traders have been required to successfully finance the CARS coupons for customers up till the traders are repaid by the federal government could finally make up for some of the advantages of the program. Training Workers:- LaHood further said that there had been around 1,000 people who have got processed their applications that evaluate with fewer than 200 when the program began. The agency also by using Citigroup Inc. is providing necessary training to its staff to handle the paperwork. Robert Gibbs, White House press secretary, said to reporters at a briefing that “they are doing everything to accelerate the processing of the applications in a program that’s been flourishing, for customers, traders, makers and workers. GM said that General Motors Co. is planning to offer cash advances to traders awaiting government reimbursement as the initiative impels. He also said that the advances will be made for new automobiles sale already exchanged under clunkers through the life of the program. GM will be provided the government initiative for their most excellent sales this year. According to J.D. Power & Associates, new-Vehicle trade sales in the U.S will top 1 million for the first time long-ago in 12 months. Meredith Libbey, a spokeswoman for the automaker’s loan unit said that Ford Motor is rising the accessibility of credit for traders used-vehicle financing to provide cash flow relief to traders awaiting ‘clunker’ payments from the government.

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Is Cash for Clunkers program falling short of cash?

Amid confusions over the suspension of cash-for-guzzlers popular government program by auto dealers last night because it was approaching the one billion dollar limit, a white house spokesman confirmed that the program has not been suspended and continues to operate, however continuous assessment is being carried out to assess the budget and the program. ‘Transportation Department told us to cancel the program after just six days’ revealed Bailey Wood, the spokesman National Automobile Dealers Association.

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‘Administration department is in regular touch with House Speaker Nancy Pelosi, D-Calif., and sponsors of the cash-for-guzzlers legislation in to find a solutions. We are concentrating on getting results by this program a successful one’, said Pelosi spokesman Drew Hammill. However, this statement was declined by Rae Tyson, the spokesperson of Transportation Department. Wood was not available for comment. Wood said ‘NADA is planning to send an advisory to members on how to react to the expected defect’. Members of the Michigan congressional delegation also are set to discuss how to increase funding for the program.

Wood came up with a revelation “The proof for a backlog of around 200,000 pending claims, which may exhaust the program’s budget of $1 billion, was found by the survey conducted by NADA”. It must be noted here that NADA conducted a survey of 2,000 dealers.

.The program started processing the claims of the dealers for repayment of a sum of $3,500 to $4,500 consumer credits on 24th July. The program was supposed to continue through 1st November.

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