URG Says Feds Missed Opportunity to Keep Cash for Clunkers Program Green

The United Recyclers Group says that the federal government is not doing enough to help promote the green aspects of the auto salvage industry and encourage the use of environmentally-friendly green auto parts. "Cash For Clunkers created some much needed green awareness for consumers and momentum within the auto industry," said Michelle Alexander, executive director of the URG.

"But a big opportunity was missed by the federal government when they all but abandoned C4C once the front end of the program involving the new car manufacturers and dealers was completed. The back half of the program is far greener than the front half, and yet the ball has been dropped when it comes to promoting the truly green aspects of C4C. We call on the federal government to change course and help us promote the use of affordable and green auto parts to American consumers," Alexander added.

C4C has also resulted in a number of unanticipated problems for the nation's auto salvage industry. With 690,000 cars sold during the brief run of the C4C program, and an equal number traded in and scrapped, a 'tsunami of steel' has hit the industry. A number of unexpected delays by the federal government and a shortened run time for the CARS program have meant less processing time for recyclers. There are still serious issues, despite the recent announcement of a 90 day extension to the 180 day deadline (making 270 days total) for processing all of the scrapped C4C vehicles.

Alexander says, "URG has requested and continues to fully support a minimum six month extension of the CARS program processing deadline mandated by the National Highway Traffic Administration. We need at least a full year to do this job right. The recent 90 day extension is a step in the right direction, but it doesn't go far enough. Many of our members now have a one to two year inventory of automobiles waiting to be processed. There has been no help at all from the federal government promoting the use of green reusable auto parts.

"So with no increase in demand, we are simply looking at an increase in our costs, and it isn't reasonable or fair to auto recyclers. Auto recyclers are hardworking small businessmen and women, very much tied to their communities, and can be found in every congressional district in America. Just because they don't have the lobbying clout of the 'Big Three' in Washington doesn't mean their needs and concerns don't matter when new programs like C4C are created."

United Recyclers Group, LLC is a partnership of over 330 industry leading auto recyclers that work together to improve and modernize the automotive recycling industry. Changes they have made include developing their own inventory management system, Pinnacle and Pinnacle Pro; creating a buying cooperative; and offering group marketing.