Washington – Appliance manufacturers are counting on a “cash for clunkers”-type rebate program to revive slumping sales of refrigerators, washing machines and dishwashers.
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Beginning late this fall, federal rebates will be available for purchasers of high-efficiency household appliances, furnaces and air-conditioning systems. Congress authorized $300 million for the program earlier this year as part of the federal economic-stimulus bill.
After seeing the recent surge in new-car orders attributed to the federally funded clunkers program, appliance industry executives are hoping to lure consumers back into appliance store showrooms with rebates that are expected to reach $200 on some types of appliances.
“It’s a good way for the consumer to get back into the marketplace,” said J.B. Hoyt, director of governmental relations for Whirlpool Corp., the world’s largest producer of household appliances by revenue. “Clearly, anything that boosts business is good for us.”
Whirlpool has been pushing for such a program for years. The 2005 energy bill included an authorization for $300 million over six years for energy-efficiency rebates on appliances. That authorization was never funded, but in the 2009 stimulus bill, the entire $300 million was authorized.
Appliances covered by the program include dishwashers, washing machines and refrigerators. They must carry Energy Star ratings, indicating they meet energy-efficiency standards set by the Environmental Protection Agency and Department of Energy. To qualify for rebates, buyers won’t have to trade in older, less-efficient models, which is a key component of the car program. Appliances made by companies based overseas will be eligible for the rebates if they have the Energy Star label.
In 2008, about 55% of newly produced major household appliances qualified for the Energy Star designation, according to the Association of Home Appliance Manufacturers in Washington.
Whirlpool, Electrolux, General Electric Co. and other appliance companies are mired in severe sales slumps linked to the collapse of the U.S. home construction industry and prolonged by an economic recession that has damped consumers’ interest in buying expensive durable goods.
The $300 million was distributed to states based on the number of households. But the federal government left most of the details, including specific rebate amounts for each type of appliance, up to state governments to decide. States’ plans for the program are due to the Department of Energy by Oct. 15.
More Obamanomics. The CARS program is crashing and burning (many dealers are withdrawing because the government has not been making the payments) and now taxpayers are supposed to bail out another industry? How about a Cash for Clunker Presidents program!
Just keep wasting money until we will all be out in the streets begging for food.
People don’t have what to eat and the government is handing out money for new cars and applianes.
I am real scared!!!!
We can jump start the economy by breaking things! Destroy good cars, to get people to buy new cars. Destroy good washer/dryers to get people to but new applicances. Perhaps, we should break old computers? Heck, with the surplus of houses we should call in the wrecking crew- watch home prices recover in an instant! And imagine all those construction jobs we could generate if we just flatten the entire Manhattan. Why wait for Ahmadinejad? But first let’s kill 90% of all lawyers- that would reduce the supply of attorneys and thus make the survivors so wealthy that they’d never want to leave the field for politics where they would come up with such twisted ecomonic recovery schemes.
Okay, a lot of us have enjoyed rebates on Energy Star appliances in the past. If they’re trying to add more money to the program they could at least allow them only for appliances made in this country. Our economy is bad enough. We don’t need to get China up and running again while our own workers are on unemployment.
obama a failure. thank all you losers who voted for this arrogant who can’t do anything.
Doesn’t the goverment understand temporary boosts don’t help in the long term.Yes,cars sold nicely for a few weeks,in cash for clunkers,but it not do a long term fix.Most importantly,it did not releive the unemployment crisis.
I have an idea. The government should give rebates to people to throw down old, drafty homes & build new ones that are energy efficient. While they’re at it, maybe throw in solar & geothermal energy for electricity, heating & cooling; windows, HVAC systems, lights & shades that open & shut depending on motion, temperature & time of day. Drill water wells in the backyard — with cost efficient solar lights — and seal the house tight. Oh, and of course add the energy efficient appliances.
And since many people can’t get mortgages, who else but good old uncle Sam should finance what’s not rebated at a 0% or very low interest rate.
What a great solution for the crumbling catskills infrastructure! Is anybody really this dumb?
I bought a new Energy Star washing machine. I want my old machine back.
You have to Love Obama. I bet Obama goes to sleep thinking, hmm how can I get all my people, free cars, section 8, food stamps, free health insurance, free vacations, unlimites gasoline, free boats, food stamps , trade ins, clunker programs which include cars, dishwashers,dryers and all types of clunkers and the list goes on and on.
Lets face it! Obama used to tell himself as a kid if i were president…………
Mpw that he is president he is just giving money and the entire country is up for sale!
And idiots like you voted for him!
If I turn in my gas refrigerator what can I get for it?
My Fridge has Wheels and a Motor…Do I get $4500 + $200…Where do I sign up?
Wow, its really hard to believe that there are that many really ignorant people out there that there are only negative responses in here. If you think that your tax dollars are going to ever be spent in a better way to directly effect you, then please enlighten us. Do any of you really know where your tax dollars are going anyway? How about education? In a country that is supposed to be the most advanced nation on earth yets spends the smallest fraction of its tax revenue on education, less then any other industrilized nation on earth, what are you really getting out of it? Unless you are in the military, or in someway working in the military industry, any real benefits you recieve from your hard earned taxes is minimal at best. So yes, some cash back for something that you can really use in the long term – like new refrigerator or other appliance – IS a good and worth while use of our tax dollars. What short sighted people these, the biggest problem with this nation is that it has become a fastfood, fast reponse, fast instant quick as you can knee jerk reactionestic nation. Slow down, think LONG term for a change, if that is even possible.