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    Cash for Clunkers
July 31, 2009

Cash for Clunkers gets reprieve

BY ART BUKOWSKI

TRAVERSE CITY -- Cash for Clunkers was too good for Amanda Erickson to miss. It appears Congress agrees.

Erickson, a Florida resident who summers in Traverse City, expects to get $3,500 in trade for her 1996 Lincoln Town Car under the federal stimulus program. She sat at a table Friday at Saturn of Traverse City and filled out paperwork to purchase a new vehicle.

"I think it's great; I was afraid I was going to miss it," Erickson, 86, said. "The Lincoln has a lot of miles on it. You've got to update sometime; this is a good time to do it. I couldn't get $3,500, I'm sure, if I tried to sell it."

Gov. Jennifer Granholm visited the U.S. 31 dealership Friday afternoon to tout the clunkers deal amid confusion over the program's continuing financial viability. The plan offers owners of old cars and trucks $3,500 or $4,500 toward new, more fuel-efficient vehicles in exchange for scrapping their old vehicles.

The U.S. House of Representatives overwhelmingly voted Friday to rush $2 billion into Cash for Clunkers after unexpected demand tore through the $1 billion initially set aside. Senate action is likely next week, though officials assured consumers they can take advantage of the incentive through the weekend.

Granholm toured a lot filled with about 50 clunkers turned in to the dealership. She said the program has been "successful beyond anybody's wildest expectations" and has provided a giant boost for the state.

"For Michigan, obviously it has huge significance for those who are auto dealers, auto manufacturers, suppliers and employees, as well," she said.

It's "sweet justice" that Michigan perhaps receives the greatest nationwide boost from the program, Granholm said, considering recent tough times in the state.

Granholm also praised Cash for Clunkers' other main intention -- turning consumers on to fuel-efficient vehicles.

"This is why it's a home run. It's a win for the economy, but it's a win for the environment as well ... it's win, win, win, win," she said.

Bill Marsh Jr., who runs the group that operates the Saturn dealership, said program participation is soaring.

"We've taken a lot of people who ordinarily wouldn't be new car (purchasers)," he said. "This is an opportunity for people to get five or 10 times the value for their vehicle. It's really created a lot of demand."

George Chichester, general manager of nearby Williams Chevrolet, said customers are flooding his dealership to take advantage of the incentive.

"We're seeing some great excitement out here in the public," he said. "We haven't seen this type of excitement in some time."

The Associated Press contributed to this report.

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