Effort To Pay Out Clunkers Cash To Dealers Accelerating

09.04.09 | FL News Team

Payouts of about 500-million dollars to auto dealers have reportedly been approved by the Obama administration under the "Cash for Clunkers" program. Detroit's "Free Press" reports that's out of a total of almost two-point-nine-billion dollars claimed by car dealers in reimbursement for fronting rebates under the program. "Clunkers" offered cash rebates to consumers who traded in older gas-guzzling vehicles.

 

A U.S. Department of Transportation official speaking on condition of anonymity estimated the payments to dealers will be finished by the end of the month by a beefed-up staff. The official said two-thousand more workers will be added to the three-thousand already reviewing the deals submitted for payment.

 

The Obama administration has praised the plan as a huge success, although some dealers have complained that payments to them have been slow. It's been estimated that "Clunkers" boosted U.S. auto plant production and preserved 40-thousand jobs.