AutoNation: Owed $45 Million From 'Clunkers' - Automotive * US * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Well Do You Know Your Bird?
Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.
A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

AutoNation: Owed $45 Million From 'Clunkers'

Published: Wednesday, 19 Aug 2009 | 10:37 AM ET

Text Size

By: CNBC.com

AutoNation CEO Michael J. Jackson told CNBC Wednesday the government owes his company about $45 million in rebates from the cash-for-clunkers program, but said he still has faith in the program.

Mike Jackson
CNBC.com
Mike Jackson

“This is a fantastic stimulus program that’s working on absolutely every level," said Jackson. "It is so successful beyond everyone’s expectations, that the Department of Transportation was not prepared to deal with this unbelievable surge.”

Since the program, the Cash Allowance Rebate System, began July 24, there have been about 411,000 transactions for new cars, costing the government upwards $1.5 billion. But some dealers aren't receiving the promised rebates, causing them to advance the money on behalf of the customer.

While confidence in the government's program may waiver because of the delayed rebates, Jackson said he finds little room to complain.

"I’m a bit sanguine about it," said Jackson. "To me, it’s like you throw a drowning man life preserver and he complains about the color of the life preserver.”

Jackson said he is confident that the backlog will be broken within the next several weeks and the rebates will begin to flow smoothly.

“The program is succeeding on every level, except for this administrative log jam that we have at the moment, which I am very confident we will get get fixed,” said Jackson.

The Department of Transportation responded to CNBC about the delay in dealers receiving their rebates in a statement that claimed the department "... is committing enormous resources and working overtime to the process the overwhelming volume of applications both quickly and responsibly while getting rebates paid for complete and valid deal.”