Scrappage Programs Part of Stimulus Package?

U.S. House of Representatives leaders are interested in including a vehicle scrappage policy or fleet modernization program in the upcoming stimulus package, though it might be integrated into the auto bailout proposal.

It is unlikely the stimulus package will occur prior to President-elect Barack Obama taking office in January, but the automotive bailout is expected to occur sooner.

Because the congressional goal is to get cash into the marketplace as quickly as possible and to spark interest in consumers purchasing vehicles, the debate over funding for fleet modernization is expected to occur sooner rather than later.

Congress is currently considering putting millions of dollars into the market for people who cannot afford to purchase a replacement vehicle to jumpstart cash flow and to possibly get more fuel-efficient or cleaner cars on the road.

According to the National Automobile Dealers Association, funding should be considered for state fleet modernization (also known as "cash for clunkers") programs such as those in place in Texas and California, that encourage consumers to upgrade their older vehicles to newer, more environmentally friendly models.

Waxman to Chair Energy, Commerce Committee

The House Democratic Caucus voted 137-122 in favor of Rep. Henry Waxman, D-Calif., serving as chairman of the Committee on Energy and Commerce over the former chairman, Rep. John Dingell, D-Mich.

Many of the independent automotive repair issues are assigned to the jurisdiction of the House Energy and Commerce Committee.

Waxman helped the Automotive Service Association obtain language in the 1990 Clean Air Act Amendments to assist repairers with emissions service information. The automaker Web sites are a product of this language and subsequent U.S. Environmental Protection Agency regulations.

Baucus Calls for Health Care Reform

Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, has created a plan for health care reform that claims to offer a new option for individuals and small business in the market for health insurance.

The Health Insurance Exchange, an independent entity, would organize affordable health insurance options so that individuals and small businesses would be able to obtain affordable health care coverage. The Exchange would provide them with the opportunity to compare private coverage options and to purchase the policy that would best suit their needs, and, says Baucus, provide subsidies to ensure that insurance is affordable.

FTC Against CCC, Mitchell Merger

The Federal Trade Commission (FTC) has issued a complaint against the merger of CCC Information Services Inc. and Mitchell International Inc., claiming that the merger would obstruct competition in the market for electronic systems used in estimating damages done in the collision industry.

These include estimates for the cost of collision repairs, also known as "estimatics," and software systems used to value totaled vehicles, or total loss valuation (TLV) systems.

The FTC believes the merger of CCC Information Services and Mitchell International would harm insurers, repair shops and car owners because it would reduce competition in this already highly concentrated market, from three to two competing corporations. Audatex is the only other competitor.

House Passes Auto Industry Bailout Legislation; Leaders Drop Greenhouse Gas Provisions

The U.S. House of Representatives has passed the automotive manufacturer financial assistance legislation, H.R. 7321. Controversial language prohibiting participating automakers from using funds to challenge state vehicle greenhouse gas (GHG) regulations was dropped.

Draft legislation included language prohibiting the use of bailout funds by the Big Three "from participating in, pursuing, funding or supporting in any way any legal challenge (existing or contemplated) to state laws concerning greenhouse gas emission standards," thus terminating automakers' participation in state lawsuits against adopting such standards.

While the Automotive Service Association supports clean car programs that are practical and cost effective, it does not support state GHG programs that contain zero-emission vehicle (ZEV) super-warranty provisions because they have a negative economic impact on independent repairers and the automotive industry, as well as limit the choices of repair for consumers.

America's independent automotive repairers often provide a less-expensive repair alternative to consumers, and are more conveniently located in many rural areas than automotive dealerships. Independent facilities repair approximately 75 percent of all vehicles out of warranty. Most consumers use the franchised dealer network for warranty repairs, and then select their neighborhood repair facility once the vehicle is out of warranty.

To view this bill, visit ASA's legislative Web site, www.TakingThe Hill.com.