McCain to Filibuster Cash for Clunkers

Auto recyclers leery of cash for clunkers

By CATHERINE TSAI (AP) – 4 days ago

DENVER — Not all auto recyclers are relishing the government's new cash for clunkers program, which requires car dealers to destroy the gas-guzzlers they get as trade-ins from new car buyers.

Used engines and drivetrains are a big part of recyclers' income from each scrapped car, and under the federal program those engines must be destroyed. The idea is to promote fuel efficiency and help automakers, but it comes at a time when more than a dozen U.S. auto parts suppliers have filed for bankruptcy this year.

"Why throw away good parts when the supply chain is in jeopardy? It doesn't make a whole lot of sense," said Michael Wilson, executive vice president of the Automotive Recyclers Association based in Manassas, Va. Engines and drivetrains account for 60 percent of recyclers' revenue from a used vehicle, Wilson said.

Under cash for clunkers, the government is advising car dealers to replace a trade-in's engine oil with a sodium silicate solution and run the engine to ruin it before giving or selling the car to a scrap dealer.

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