No doubt most of you have heard that the Obama administration has effectively sacked Rick Wagoner, erstwhile head of GM, as part of the continued efforts to reorganize and streamline the former Big Three automakers. (Ford, at least, isn’t in hawk to the taxpayers like GM and Chrysler!)
Buried within that news, however, was a policy the Obama administration has been considering: scrappage programs for older vehicles. Widely opposed by the auto aftermarket, the scrappage programs (similar to what has been done in Europe) would “pay” consumers via tax credits for trading in their old gas- and oil-guzzler for a new, more efficient and theoretically environmentally friendly vehicle. We’ll see if this baby every gets put to bed, but I’d be willing to bet the automotive aftermarket associations will fight it tooth and nail.