The United States Congress is making a critical mistake by introducing the so-called "cash for clunkers" bill, which seeks to restrict the sale of two major replacement parts: the engine and transmission.
By continuing to be unsympathetic to professional automotive recyclers, this environmentally "green" industry will likely experience financial hardship as well as the end-user, the customer, who needs to replace an engine or transmission.
Overall, automotive recycling serves as a ,22 billion industry in the United States and employs over 103,000 people at more than 8,267 businesses around the country. By any estimation, these figures reflect a significant piece of our country's economic pie.
An estimated 86 percent of automotive recycling companies feature full service and employ 10 or fewer people, with an annual payroll estimated to be about ,3.3 billion.
Professional automotive recyclers adhere to stringent environmental regulation - including the removal and reuse of engine oil, transmission fluid, gas and mercury-containing light switches and Anti-lock Break System assemblies. The direct cost to process a salvage vehicle ranges across the country from ,400 to ,600.
Not allowing automotive recyclers to sell the engine and drive train components will result in decreased inventory and a net sales revenue loss of 50-60 percent per vehicle. A loss at such a rate would be nothing short of crippling for professional automotive recyclers everywhere.
At the expense of helping one industry, Congress should, at the very least, consider allowing professional automotive recyclers the ability to reuse quality Original Equipment Manufacturer automotive components as replacement parts for consumers.
The automotive recycling industry is made up of professionals who are dedicated to protecting our environment and providing low-cost alternative replacement parts for the American public.
