This year, Labor Day in the U.S. will be celebrated on September 7. That’s over two weeks away, and not that long ago, the government had said the C.A.R.S. (Cash for Clunkers) program would be funded through that date. Looks like the rebate system is once again a victim of its own success once again: a new report says that C.A.R.S. will be shut down Monday.
The news is all unsourced and unverified at this point, but [UPDATE: It’s official] all indications are that the wind down is really happening. More details are to be revealed tomorrow, but it seems likely that the entire $3 billion has been spent or accounted for.
Transportation Secretary Ray LaHood assured auto dealers yesterday that “there will be no car dealer that won’t be reimbursed.” GM has stepped up to the plate and will reimburse dealers directly while they wait for the government to send out the checks. The Auto Alliance says that almost 750,000 new vehicle sales were generated by C.A.R.S. in the last six weeks and “gives NHTSA credit for working closely with manufacturers and dealers to insure consumers could benefit from one of the most economically stimulative programs this country has ever seen.” More details after the break.