MARCH 2010

Time extension secured for Cash for Clunkers crushing

The National Highway and Traffic Safety Administration (NHTSA) has issued its final ruling which allows automotive recyclers an additional 90 days, for a total of 270 days, to crush or shred vehicles traded in under the Consumer Assistance to Recycle and Save (CARS) program. The final rule amends regulations implementing the CARS program – also known as “Cash for Clunkers” – initially published on July 29, 2009.

The Automotive Recyclers Association’s (ARA) executive vice president Michael E. Wilson commented, “By providing the consumer increased access to economical green recycled automotive parts harvested from vehicles that were traded in under the program, consumers will benefit along with the businesses that sell those parts. Without this extension, some cars with quality parts might have been crushed in order to meet the original deadline.”

The NHTSA final rule states that “the additional time will allow the public to benefit from the availability of lower cost used vehicle parts from vehicles traded in under the (CARS) program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding.”

NHTSA initiated an official agency proposed rulemaking on November 27, 2009, that lasted 20 days to allow for public comments. ARA, along with many members, offered the Agency overwhelming support for the extension.

By extending the consumer program, three times as many cars were traded in than were expected, almost 700,000 in all, but the disposal period remained the same. This ruling now offers automotive recyclers more time to process the cars, which in turn keeps more recycled parts available to the consumer, as well.