Biodiesel Vehicles Get Boost from Cash for Clunkers

John Davis

CARSNew cars that run on biodiesel have gotten a boost from the federal government’s Cash for Clunkers program.

Biodiesel Magazine reports that portion of the American Recovery and Reinvestment Act of 2009 has helped encourage the sale of clean diesel vehicles, which, of course, run on biodiesel:

“It’s completely exceeded our expectations,” said Sean Maynard of Volkswagen U.S. “Clean diesels have been 30 percent of our total sales over the past month.”

“We’re running out of stock of TDI clean diesels,” Maynard told Biodiesel Magazine. “We can’t sell these models fast enough.”

The National Highway Traffic Safety Administration reported, however, that the program’s funds could be exhausted because of overwhelming consumer demand. Regarding this situation, Dave McCurdy, CEO of the Alliance of Automobile Manufacturers made the following statement. “Alliance members urge the Administration to increase funding to this important program,” he said. “The very fact that we’re at this point just days into the program shows how effective these incentives have been. In addition to seeing an increase in sales of more fuel efficient vehicles with the latest safety enhancements, we’re seeing an increase in dealer traffic that will contribute to the wellbeing of automakers and the entire supply chain.”

The U.S. Senate is to vote on whether to renew the program tomorrow (Thursday).

Biodiesel, Car Makers