Cash for Clunker Bill Chugs Through House of Representatives

Environmentalists Not Sure If Clunker Bill Should Be Junked or Lauded

This of course makes environmentalists wonder if the ridiculously low miles per gallon increases under the clunker bill are really little more than a veiled component of the auto industry bailout, rather than a hard hitting environmental initiative designed to provide cleaner air and an overall healthier environment.

Of course, the other aspect that is rarely discussed is the kind of car that a consumer would buy under the cash for clunker voucher program. With Chrysler and General Motors being in disarray, all eyes are on Ford. On the other hand, Ford's reputation has not been overly stellar and it makes only good sense that there will be a run on Toyotas, Hondas, and Kias.

While it is true that the clunker bill could benefit the American auto industry, it is highly unlikely that consumers will pass up competitively priced foreign models from fiscally stable manufacturers, where they do not have to worry about the American government backing the warranties, and where dealerships will still be in business tomorrow for repair work.

Sources

http://www.associatedcontent.com/article/1390406/proposed_congressional_cash_for_clunkers.html?cat=62; http://www.politico.com/news/stories/0609/23550.html; http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/03/BU9O1808JK.DTL