AASA Supports New Vehicle Incentives, But Opposes Indiscriminate Scrappage Programs

AASA Supports New Vehicle Incentives, But Opposes Indiscriminate Scrappage Programs

In conjunction with its recently released "Special Report," the Automotive Aftermarket Suppliers Association (AASA) has announced its support of new vehicle incentives legislation, but its opposition to indiscriminate vehicle scrappage programs. AASA's "Special Report" analyzes the serious unintended consequences of proposed vehicle scrappage legislation.

In conjunction with its recently released "Special Report," the Automotive Aftermarket Suppliers Association (AASA) has announced its support of new vehicle incentives legislation, but its opposition to indiscriminate vehicle scrappage programs. AASA’s “Special Report” analyzes the serious unintended consequences of proposed vehicle scrappage legislation.

“Motor vehicle parts suppliers are the nation’s largest manufacturing sector, directly employing nearly 680,000 U.S. workers and contributing to 3.2 million private industry jobs across the country. Our industry is vital to the nation’s economy,” said Steve Handschuh, president and COO of AASA. “The dramatic drop in vehicle sales affects vehicle manufacturers, suppliers, dealers, parts distributors, repair shops and even automotive technicians. However, a voluntary accelerated vehicle retirement program would prematurely retire some vehicles from the national fleet prior to the end of their useful life – and have a negative effect on the automotive aftermarket.

“AASA believes a nationwide mandate to establish a uniform vehicle inspection program should accompany any program to scrap vehicles to determine which automobiles should be retired and which vehicles can be repaired to operate in the condition originally intended by the vehicle manufacturer,” Handschuh said. “This approach will allow consumers to purchase, replace or repair a vehicle while insuring safer, cleaner and more fuel efficient operations on the nation’s roads. A program to stimulate vehicle sales would provide critical revenue for the auto industry and in turn would assist in our nation’s economic recovery.”

AASA supports:
• Legislation that provides an immediate incentive for the purchase of new vehicles
• A consumer incentive that is immediate, direct and simple to administer;
• If this legislation requires the retirement of existing vehicles, provisions must be added to:
– Create consumer incentives for the performance of needed maintenance and repairs, and
– Protect against the indiscriminate scrappage of vehicles.

According to the AASA report, “Unintended Consequences of Accelerated Retirement of Inefficient Vehicles: Supporting Vehicle Sales, Vouchers to Purchase, Replace or Repair Vehicles and Opposing Indiscriminate Scrappage Programs,” a nationwide vehicle inspection program would also bring with it the added benefits of providing new jobs and capital investment at the state level, while increasing the level of safety on America’s highways and improving fuel efficiency of many of the existing vehicles in operation.

“This is not a time to procrastinate, but neither is it a time to act without appropriate diligence,” Handschuh explained. “It is not enough to show that a proposed policy will accomplish its goals, it must do so in the most efficient and cost effective manner available without causing disruption elsewhere.”

The full AASA “Special Report” is available by clicking here.

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