http://www.thetelegraph.com/news/ter...linsville.html
LaHood terms car program a success
August 21, 2009 10:27 PM
By SANFORD J. SCHMIDT
The Telegraph
COLLINSVILLE — Transportation Secretary Ray LaHood called the "Cash for Clunkers" program an overwhelming success Friday, even as he faced a grilling because some car dealers aren’t getting their cash as fast as they would like.
LaHood, a former
Republican congressman from Peoria, spoke to the media in Collinsville shortly after a meeting with area leaders on the subject of transportation. Reporters from St. Louis television stations told him the dealers in their city are up in arms because the federal government still owes them money.
"We had no idea this program was going to be so successful," LaHood said. He called it "one of the most overwhelming successes I can remember."
LaHood explained that some of the problems in reimbursing dealers are caused by applications from them that were not filled out properly.
He said 2,000 people are going over the applications, but reporters said dealers are complaining that the forms, which include 10 questions, are too complicated.
LaHood said he doesn’t feel the applications are too complicated, but he noted there will be an Internet program this weekend to walk the dealers through the process.
Under the program, the government has allocated
$2 billion to people who want to trade in gas-guzzlers for more fuel-efficient cars. LaHood said there were more than 500,000 deals made in fewer than 30 days.
President Barack Obama announced this week that the program will end Monday.
"All I can say to dealers is, keep selling cars," LaHood said, assuring reporters that the dealers will get their money.
Many dealers have said they will stop Cash for Clunkers sales after today to make sure they get reimbursed by the government for the rebates of up to $4,500.
The program has helped revive sagging auto sales by allowing drivers to trade in older, less fuel-efficient vehicles for new cars and trucks.
Originally expected to last for several months, the program is on track to exhaust its funds
in just over four weeks.
It has been a big hit with buyers but has led to hassles for dealers, who have been paid for only a fraction of the rebates they’ve extended to customers.
Many dealers have expressed concern that they won’t be repaid. As of Thursday, only about 7 percent of rebates had been repaid.
LaHood, U.S. Rep. Jerry Costello, D-Belleville, and Illinois Transportation Secretary Garry Hannig, a former state representative from Mount Olive, spoke to the press after talking to members of the Leadership Council Southwestern Illinois.
The purpose of the visit was to talk about federal stimulus package money flowing into the state and region, along with money coming in from a capital spending bill recently passed in Illinois.
"Illinois has gotten more money out the door faster," Costello said.
He said the spending has put people to work in several parts of the state.
Hannig said the state received $620 million and units of local government have received $300 million from the federal stimulus bill. Many projects were ready to go when the bill passed, so the money was spent more quickly here than elsewhere, and the money has put more people to work, he said.
Hannig said approval and construction of a new bridge across the Mississippi River at St. Louis is the No. 1 priority for the Illinois Department of Transportation.
The guests at the transportation roundtable also talked about proposals to build a high-speed rail system in Illinois.
"Our top priority in Illinois is the Chicago-to-St. Louis route," Hannig said.
LaHood said he is convinced people will use high-speed rail if it is built to carry passengers quickly, safely and cheaply.
"If you build it, they will come," he said.