AAIA Predicts Consumer Backlash on 'Cash for Clunkers'

BETHESDA, Md., July 23 /PRNewswire-USNewswire/ -- As new car dealerships ramp
up advertising to attract consumers to the showroom using "Cash for Clunkers"
as an incentive, the Automotive Aftermarket Industry Association (AAIA)
anticipates a consumer backlash once reality replaces the hype.

"It wouldn't surprise me if there is a consumer backlash once car owners
realize that 'Cash for Clunkers' is nothing more than a clever slogan for a
program to spend $1 billion of our tax dollars to fund a government subsidized
vehicle trade-in to help new car dealers sell cars," said Kathleen Schmatz,
AAIA president and CEO. "Consumers will soon learn that they are simply
trading in their vehicle and will still have to jump through all of the hoops
to qualify for and purchase a new vehicle."

The much heralded fuel efficiency and environmental benefits of purchasing a
new vehicle could easily be achieved through better maintenance of an existing
vehicle or trading up to a newer used vehicle, according to AAIA. Any savings
from improved miles per gallon will be lost from the costs involved in
destroying and disposing of the "clunkers."

AAIA has strongly opposed "Cash for Clunkers" that prematurely destroys
vehicles and their valuable parts and components. "Destroying vehicles with
many more years of life denies consumers more affordable used vehicles and
pulls vehicles from the aftermarket supply chain," said Schmatz.

The Consumer Allowance Rebate System, the official name for "Cash for
Clunkers," offers vouchers up to $4,500 to new car dealerships for consumers
who trade-in their vehicle for a new, more fuel-efficient vehicle.

About AAIA
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and
affiliates manufacture, distribute and sell motor vehicle parts, accessories,
service, tool, equipment, materials and supplies. Through its membership, AAIA
represents more than 100,000 repair shops, parts stores and distribution
outlets.

SOURCE Automotive Aftermarket Industry Association

Rich White of the Automotive Aftermarket Industry Association,
+1-301-654-6664, ext. 1030, rich.white@aftermarket.org