One of these upcoming programs to further stimulate the economy includes the government rebates of $50 to $200 for purchases of high-efficiency appliances with the Energy Star logo. The money is included in an economic stimulus bill that was passed earlier this year, with specific details as far as which appliances are covered in each state will be released by the Energy Department on October 15th.

The problem for appliance giants like Whirlpool and Electrolux is that consumers are simply not running out to replace their aging dishwashers, refrigerators and washing machines. Whirlpool controls almost 50% of the US market for appliances, has experienced a 20% drop in worldwide sales in the first half of 2009 and indicates they will lay off at least 5,000 workers this year as a result. Electrolux has already laid off 3,000 workers since December of 2008, and moved most of their production to lower-cost countries to reduce their overhead. Appliance makers are applauding a government-backed rebate program, as they feel it will get consumers back out to the stores to purchase new appliances to take advantage of the rebates. J.B. Hoyt, the director of government relations at Whirlpool, says “Twenty-five dollars does not get consumers’ attention on a $500 purchase.” Appliance makers are lobbying their state energy commissions to encourage the highest rebates possible for consumers, in order to get the most results of shoppers purchasing new appliances.

The challenge with a “cash for clunky appliances” type program is that most consumers wait until their refrigerator, washing machines or dishwashers no longer WORK before they think about buying a new one. Another common reason to replace appliances is during a home renovation, which most people won’t just start because they’ll save $200 on an appliance, for example. Most people don’t expect an appliance rebate program to be as powerful as the Cash for Clunkers was; but anyone in the appliance industry welcomes any cause of sales in this shaky economy.

Cash For Your Clunky Appliances? was created by and is property of American Consumer News.