Administration officials say enough is enough and no additional funding will be sought. Additionally, claims submitted after the Monday deadline will not be accepted, giving dealers only three days to do so.
The wind down comes even if by Thursday CARS had burned through $1.9 billion, translated into some 457,000 vehicles on the road. The main issue is that there still are claims to be submitted by dealers which can exceed the remaining sum of money.
On Thursday, the National Automobile Dealers Association (NADA) warned dealers they are at risk not to receive their money back for the claims they submit. "Dealers who accept additional 'clunker' deals face a growing risk that they may not be reimbursed," John McEleney, NADA chairman said.
Transportation Secretary Ray LaHood announced yesterday the administration is looking into a "orderly wind down of this very popular program.” He ackowledged CARS was a "lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work.”
President Barack Obama also recognized the contribution CARS has had to the apparent rebound of the industry. According to msnbc.com, the President CARS was "successful beyond anybody’s imagination,” and the glitches experienced by dealers come from the overwhelming consumer response.
Even with CARS gone, another incentive is already prepared to take its place. The Auto Stimulus Plan, an effort of car dealers nation wide, promises to provide the same money as CARS, but with fewer conditions.
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