Until now, the program has burned almost completely through the $1 billion initially provided for its implementation. No less than 220,000 vehicles have been sold in a little over a week (the number includes the vehicles sold prior to the official debut of the program under CARS provisions), while reimbursement requests amount to almost $920 million.
Of course, there were those opposing the extra funds, most of them trying to emphasize the fact that the program is nothing than a smoke screen, behind which a grim reality looms. According to Richard Shelby, the top Republican on the Senate Banking Committee, quoted by Reuters, CARS has "squeezed months of normal activity" in just a few weeks.
"When the backlog is met, interest in the program will fade, and the facade of economic benefit will disappear," Shelby told the source. The big fear is that when this initial enthusiasm will pass, the automotive sector crisis will set back in and even with a greater toll.
To better understand what the fatal effects of the program may be, it is enough to take a look at the GM dealers, set to close following the bankruptcy process of the manufacturer. Whereas the respective dealers were given until January to sell their stock and then close, GM now has to allow then to close earlier, due to the depletion of their stocks, fueled by CARS.
According to US Secretary of Transportation Ray LaHood, the extra $2 billion should be enough until Labor Day (September 7). What will come next, is anybody's guess...
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