Hey, remember back in 2009 when President Obama was saving the American car industry by whatever means necessary, including offering cash incentives for trading in old cars for newer, more efficient ones? And remember how a lot of people used that incentive to buy cars that were only marginally more efficient than their junked clunkers?
Billed as stimulus both for automakers and the environment, the Car Allowance Rebates System, better known as Cash for Clunkers, turned out to be clunker itself. Besides fueling more unsustainable new-car-buying consumerism, the program also destroyed thousands of older, functional vehicles -- vehicles that, according to the Automotive Recyclers Association (ARA), were almost 100 percent recyclable. Through Cash for Clunkers, about 690,000 vehicles had their engines destroyed and many were sent to junkyards, bypassing recycling companies altogether.
The ARA issued a report when the CARS program was announced saying that a much more efficient program would have been to encourage recycled parts usage. The National Highway Traffic Safety Administration explained at the time that the engines must be destroyed to prevent the vehicles from being resold and taking the road again. For any dealer that did not follow that law, there was a hefty $15,000 fine per infraction against them.