WASHINGTON — Auto shops make a living by repairing cars, so it's no surprise that a trade group representing the sector is renewing opposition to any idea of "cash for clunkers" as part of future COVID-19 economic stimulus efforts.
The Automotive Service Association (ASA) is asking members to send a letter to their U.S. senators opposing this type of aid.
A 2009 program that provided cash for older cars during the Great Recession resulted in hundreds of thousands of older vehicles being removed from service, the association said.
"Automotive repairers have felt the economic impact from the COVID-19 pandemic. Some auto manufacturers have proposed reviving the Obama administration's Cash for Clunkers initiative, which paid the owners of older vehicles as much as $4,500 to help stimulate the economy in the summer of 2009," the group said.
"During this short period of time, approximately 700,000 post-warranty vehicles were taken off U.S. highways and out of independent repair shops."
The ASA, along with the Auto Care Association, the Tire Industry Association, the Service Station Dealers of America and Allied Trades, and the Automotive Oil Change Association, all spoke out against the idea in May.
Businesses represented by those groups primarily rely on post-warranty vehicles for their revenue, the ASA said.
"As the COVID-19 pandemic continues to ravage the nation economically, the ASA is continuing to work to ensure that a Cash for Clunkers program is not included in the next round of stimulus legislation," the group said.