DOT okays vehicles on order for rebates

Reacting to shortages caused by the popularity of the Car Allowance Rebate System (CARS), the Department of Transportation has approved rule changes that would allow vehicles in production but not yet delivered to qualify to the program.

Dealers would still need the Vehicle Identification Number to file a claim. As the VIN is assigned late in the production process, only vehicles already ordered would qualify under the expanded rules.

“The Department of Transportation is trying to make sure that everyone who wants to can participate in this wildly successful program,” said Transportation Secretary Ray LaHood. “Allowing consumers to order vehicles and qualify for the rebate will expand buyers’ choices and keep production lines running.”

Claims under the Cash for Clunkers program have already exceeded $1.42 billion, nearly half of the total funds allotted to run the program through Labor Day. The original program allocated $1 billion to run through the end of October, but results after the first week showed the funding would be woefully insufficient. Before leaving for its month-long break, Congress added another $2 billion to the coffers. Despite Republican doubts, more then 330,000 vehicles have been sold under the program.

Automakers are ramping up production of eligible vehicles. Chrysler has scheduled overtime for three weekends at its Warren Truck Assembly Plant.