It looks as if the big logjam of payments to car dealerships to reimburse them for the tax rebates they fronted to customers during the cash for clunkers program may finally be easing. The Detroit News reports that as of Thursday, the Department of Transportation had paid $500 million out to dealerships, about 17 percent of the total owed to them. That’s three times the amount paid out as of Monday, when only 5.7 percent of the money owed had been paid.
The DOT now has 3,000 employees and contract workers processing the applications and payments, which is ten times the number they originally had working on the program. That number will increase to 5,000 next week. Transportation officials pledged to have all of the payments processed by the end of this month.