SEMA Wins Protection for Collector Cars and Parts

Amendments Lessen Impact of Vehicle Scrappage Program

WASHINGTON, June 10 /PRNewswire/ -- The Specialty Equipment Market Association
(SEMA) persuaded Congress to place a 25-year limit on trade-in cars and expand
recycling opportunities under 'cash for clunkers' legislation. Under the
controversial bill, consumers will receive a voucher to help buy a new car in
exchange for scrapping a less fuel-efficient vehicle. SEMA was able to
mitigate the program's effects by convincing lawmakers to include a
requirement that the trade-in vehicle be a model year 1984 or newer vehicle.
The provision helps safeguard older vehicles that may possess 'historic or
aesthetic value' and are irreplaceable to hobbyists as a source of restoration
parts. The measure also allows all parts to be recycled except the engine.
Lawmakers were convinced to permit the drive train to be recycled if the
transmission, drive shaft or rear end are sold as separate parts.

The vehicle scrappage legislation was passed by the U.S. House of
Representatives by a 298-119 vote. President Obama has backed the plan and
passage in the Senate is expected in the near future. Proponents claim that
the so-called "Consumer Assistance to Recycle and Save Act (CARS)" may spur an
estimated 625,000 vehicle sales. The program will last for one year.

"SEMA has consistently supported efforts to spur new car sales, but is
disappointed that Congress ignored evidence that vehicle scrappage programs
will not achieve claimed environmental benefits," said Chris Kersting, SEMA's
President & CEO. "However, we are pleased that lawmakers agreed to spare from
the crusher older cars and parts that help drive the restoration aftermarket
and the passions of many in the automotive hobbyist community."

Under the program, consumers who agree to scrap a trade-in car that gets 18
miles per gallon or less (15 mpg or less for heavy pick-ups and vans) will
receive a voucher to buy a qualifying new car. The voucher will range from
$3,500 to $4,500 based on the new car's fuel efficiency. The program
primarily targets SUVs and pickups since most passenger cars manufactured
during the last 25 years get more than the 18 mpg combined city/highway
requirement. Vehicle mpg ratings are listed at www.fueleconomy.gov.

The $4 billion program will begin when it is signed into law by the president.
The car buyer will receive a $3,500 voucher if they buy a new passenger car
that was rated at 4 mpg higher than the older vehicle, or a new pickup
truck/SUV that was at least 2 mpg higher than the old truck. They will
receive a $4,500 if the passenger car was at least 10 mpg higher and the
truck/SUV was at least 5 mpg higher.

"SEMA continues to support initiatives that encourage the installation of
specialty equipment to reduce emissions and increase fuel economy," said
Kersting. "Looking to the future, SEMA will work with Congress to pursue more
efficient and business-friendly environmental approaches."

About SEMA
SEMA, the Specialty Equipment Market Association founded in 1963, represents
the $31.85 billion specialty automotive industry of 7,358 member-companies. It
is the authoritative source for research, data, trends and market growth
information for the specialty auto parts industry. The industry provides
appearance, performance, comfort, convenience and technology products for
passenger and recreational vehicles. For more information, contact SEMA at
1575 S. Valley Vista Dr., Diamond Bar, CA 91765, tel: 909/396-0289, or visit
www.sema.org and www.enjoythedrive.com.

Fact Sheet
Consumer Assistance to Recycle and Save Act (CARS)

Consumers may trade in their older vehicles and receive vouchers worth up to
$4,500 toward the purchase or qualified lease of a new, more fuel-efficient
car or truck. The mpg values are EPA combined city/highway fuel economy as
posted on the window sticker. MPG ratings are listed at www.fueleconomy.gov

Trade-in vehicles must:
-- Be in drivable condition
-- Be continuously insured and registered to the same owner for at least
one year
-- Have a combined city/highway fuel economy value of 18 mpg or less
-- Have been manufactured in model year 1984 or later
-- Work trucks must be model year 2001 or earlier regardless of mpg

New vehicles:
-- Must have a manufacturer's suggested retail price of less than
$45,000.
-- Passenger Cars: The trade-in vehicle must get 18 mpg or less. New
passenger cars with mileage of at least 22 mpg are eligible for
vouchers. If the mileage of the new car is at least 4 mpg higher than
the old vehicle, the voucher will be worth $3,500. If the mileage of
the
new car is at least 10 mpg higher than the old vehicle, the voucher
will
be worth $4,500.
-- Small Trucks and SUVs: The old vehicle must get 18 mpg or less. New
small trucks or SUVs (weighing up to 6,000 pounds) with mileage of at
least 18 mpg are eligible for vouchers. If the mileage of the new
truck
or SUV is at least 2 mpg higher than the old vehicle, the voucher will
be worth $3,500. If the mileage of the new truck or SUV is at least 5
mpg higher than the old vehicle, the voucher will be worth $4,500.
-- Large Light-Duty Trucks: The old vehicle must get 18 mpg or less. New
large trucks (pick-ups and vans weighing between 6,000 and 8,500
pounds)
with mileage of at least 15 mpg are eligible for vouchers. If the
mileage of the new truck is at least 1 mpg higher than the old truck,
the voucher will be worth $3,500. If the mileage of the new truck is
at
least 2 mpg higher than the old truck, the voucher will be worth
$4,500.

-- Work Trucks: Consumers can trade in a pre-2002 work truck (defined as
a
pick-up truck or cargo van weighing from 8,500-10,000 pounds) and
receive a voucher worth $3,500 for a new work truck in the same or
smaller weight class. Only 7.5 percent of the total funds can be used
for vouchers for the purchase or lease of a work truck.

SOURCE Specialty Equipment Market Association

Della Domingo of Specialty Equipment Market Association, +1-909-396-0289, ext.
130, dellad@sema.org