May 18, 2009
Rebates up to $4,500 would increase auto sales, boost auto industry jobs
LANSING - Governor Jennifer M. Granholm and 11 of her fellow governors today called on Congress to enact legislation that will provide consumers with financial incentives to recycle older vehicles and replace them with new, cleaner and more fuel-efficient vehicles. The governors said legislation that would help the nation modernize its fleet of vehicles is crucial for the auto industry's recovery.
"We urge the U.S. Congress to act quickly to collaborate and pass a fleet modernization bill. As stewards of the economies and environment of our respective states, we believe this legislation is a win for consumers, the economy and the environment," the governors said in a letter (attached below) to congressional leaders.
The governors emphasized the auto industry's importance to the U.S. economy and the impact on the health of communities, businesses and workers across the country.
Two weeks ago, the White House reached agreement with key congressional offices on fleet modernization legislation principles. These include consumer rebate vouchers of either $3,500 or $4,500 for purchasing a new fuel-efficient vehicle, depending on the efficiency improvements made. Action on the legislation could begin as early as this week.
"This legislation will aid the recovery of the American auto industry and boost jobs here in Michigan," Granholm said. "And by replacing older vehicles with more fuel-efficient ones, we will reduce greenhouse gas emissions and our dependence on foreign oil."
Other states and several foreign countries operate fleet modernization programs that have led to significant increases in new vehicle purchases.
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