Tuesday, 18 August 2009

Cash for Clunkers: The Real Story

When the cash-for-clunkers program started....I was mostly amused by it. There wasn’t very much planning put into this. The concept was supposed to be simple. So far, it’s been mostly a failure. Now....a congressman from Penn says that the federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted.

The dealers are now saying that reimbursement payments aren’t coming. Then they added that various applications were being rejected because of apparent procedural issues.

Then they gave a fascinating statistic.....there are currently around 338,659 submissions.

The mighty shop at the Bureau of Transportation ....has barely 220-odd folks handling the submissions.

This means each guy is handling around 1690 applications. How many could a guy handle in a day? 100 per day? Maybe.....I’d make a bet that the best you could handle is fifteen per day. Count in all the idiots who didn’t know how to fill out the forms and the guys who used bogus information to finish the form.

The 220-odd guys?

Figure a chief, and a support staff of eight for him. Then figure six IT guys. Then figure at least six admin people. Figure at least 25 managers. So at least 45-odd folks have nothing to do with real work and production.

This was designed as a failure on day one....runs as a failure on day forty-five currently, and will dissolve at day 100 as a successful failure. At least forty folks will be working on award packages for themselves for doing an outstanding job and still be doing clean-up work twelve months from now at this magnificent operation.