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Clunk Junk

Salvage Firms Are Divided On Whether The Federal Car Initiative Will Provide Their Businesses Anything More Than A Headache

August 06, 2009|By Timothy B. Wheeler , tim.wheeler@baltsun.com

Even so, though the clunkers won't be worth as much to him, he figures he'll still make $200 or $300 per vehicle if his four area salvage yards get the 500 or so trade-ins that he expects to acquire from dealers.

"I know the transmission from a Caravan will sell in 30 days," he says, pointing to a white Dodge van with "Not for Sale" written in white on the windshield. "The tranny of an Explorer will sell in 60 days," he adds, nodding toward a clean gold Ford SUV, another clunker.

It's really the principle of the federal program that gripes Miller.

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"I think it's disgusting we're dumping all this money into a dying industry," he says. The "cash for clunkers" program boosts three industries that got into trouble of their own making, he argued - car makers, banks and insurance companies.

Advocates, though, defend the program's twin aims: stimulating sales for the slumping auto industry while reducing fuel consumption and air pollution.

"There's no question that this is a wildly popular program for consumers, dealers and for the environment," says Eric Bolton, another traffic safety administration spokesman. "Hopefully, salvagers will partake of it and be enthusiastic as well."

Vote set today

A Senate deal late Wednesday night leads to a vote today extending "cash for clunkers" until Labor Day. PG 12

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