No Cash For Clunkers - Nation
By: Import User
Updated: August 19, 2009
There are new,
and growing concerns over the “Cash For Clunkers” federal rebate initiative.
Car dealers from
New York to Texas are pulling out of the program because they say they aren't getting paid.
"We're
probably owed about 45 million at this point," said Mike Jackson of
AutoNation.
Car dealers
across the country say they've made deals that hinge on a government refund but
still haven't been reimbursed.
"We have
well over a quarter million dollars right now invested. We think that hopefully
soon we'll start to get more of that money," said Toyota dealer John
Tyburski.
Estimates from
the National Automobile Dealers Association show that nationwide
tens-of-thousands of "clunkers" contracts are still pending with
millions of dollars hanging in the balance.
“The dealers have
advanced this money on behalf of the customers, that's money out the door that
the industry is now trying to collect from the U.S. Government,” said Jackson.
On Wednesday,
Transportation Secretary Ray LaHood aggressively defended the program.
He is urging
frustrated dealers to tap the brakes when it comes to their concerns about a
payout.
"They're
going to get their money, we have the money,
Congress provided the money they're going to get their money," said
Secretary LaHood.
The CEO of
America's largest auto retailer, AutoNation, agrees.
And says part of
the problem has been the overwhelming response.
"It is so
successful beyond everyone's expectation that the Department of Transportation
was not prepared to deal with this unbelievable surge. They are on it, they are
adding more resources every day," Jackson said.
The National
Highway Traffic Safety Administration is, in fact, in the process of tripling
the number of employees working to process claims.
Work that can't
come fast enough for dozens of dealers still struggling to stay in business.
