Minn.'s Pawlenty rips clunkers program

ST. PAUL, Minn., Aug. 8 (UPI) -- Minnesota Gov. Tim Pawlenty tore into the U.S. government's cash-for-clunkers program, saying "we're just paying ourselves back" because of the auto bailout.

The Republican governor said the program, which provides consumers up to $4,500 to trade in their older gas guzzlers for more fuel-efficient new vehicles, doesn't make much sense since the government bailed out General Motors Co., then gives money to consumers to buy GM products, the Minneapolis Star Tribune reported Saturday.

"It makes everybody feel good," Pawlenty said Friday during his weekly radio show, "but because we own GM, we're just paying ourselves back. It seems a little odd."

His comments were made shortly after President Barack Obama signed into law a bill allocating another $2 billion for the program, officially called the Car Allowance Rebate System.

Representatives of the state's auto dealers begged to differ with Pawlenty, who is not seeking re-election and has been subject of speculation he may make a run during the 2012 Republican presidential primary.

"I think the governor's comments are unfortunate and maybe ill-informed," Scott Lambert, Minnesota Auto Dealers Association executive director, told the Star Tribune. "This program has clear benefits to it. The only downside is that it's using taxpayer money, but it's stimulus money that's working. It's promoting some of the biggest economic activity the state has seen all summer."

A spokesman for the Twin Cities' 10-dealer Walser Automotive Group noted the state, facing a multibillion-dollar budget shortfall, could enjoy a windfall from the sales tax paid on the new vehicles.