The ‘Clunker’ program is officially over. The Transportation Department extended the deadline Monday for auto dealers to submit their Cash for Clunkers deals, giving them more time to make sure they get repaid under the popular $3 billion government rebate program. Dealers were given until noon Tuesday to submit the necessary paperwork, after the deadline was pushed back from 8 p.m. EDT Monday. All sales under the program ended Monday evening. The change came after government computers set up to handle the filings buckled under a flood of dealers trying to send in their sales agreements at the last minute. The big rush of filings on Monday shut down the filing system temporarily, prompting auto dealers to push for an extension. Many car dealerships have worked overnight in recent days to submit the 13-page application to be reimbursed for the trade-in vehicle, including the title, proof of registration and proof of insurance.

The good news was the program was far more popular than expected; the bad news was the government computer system that handles the filings was not quite ready for so any transactions.  However, about half way through transportation officials expanded its computer network capacity and tripled the number of staffers working on the program. Transportation officials claim the program was an unprecedented success and a boost for car dealers, automakers, scrap yards and financial institutions.

Cash for Clunkers, which is officially known as the Car Allowance Rebate System (CARS) — is a federal program passed by Congress and signed into law by President Obama on June 24. The program is meant to encourage consumers to trade in older, less fuel-efficient vehicles for new vehicles that get better fuel economy by providing a credit worth up to $4,500. Modeled after several programs that have already been successfully implemented in Europe, the program is expected to begin on this month and end on November 1, 2009. There are many who favor this program, and are hoping for results in stimulating the auto industry and improving vehicle emmissions. however, there are many who feel as thought it is a worthless program, as vehicles must be worth less then $4500 and have an average EPA of 18 mpg or less.  Considering the standards, opponents say, there are very few vehicles that will qualify.  To get the whole story check out this article on the Cash for Clunkers program, the pros, the cons, and what it will mean for car owners and dealers alike.

The latest news for Chevy is that General Motors will keep its new subcompact car production in the US.  GM originally planned to make the new car in China, basing it on the Chevrolet Spark set for sale next year in Europe. But in May, GM agreed to make the car in the United States in exchange for UAW concessions in advance of the automaker’s June 1 Chapter 11 bankruptcy filing in New York. Although two of GM’s factories will still close, the automaker’s Orion Township, Mich. Factory will be retooled and will make as many as 160,000 small and compact vehicles a year on two shifts. The Spring Hill and Janesville plants, which had been candidates for the small car, now face the prospect of indefinite idling.  Stamping for the new car will take place in Pontiac, Mich., GM said in a statement. The small car, which GM said it plans to start producing in 2011, will save about 1,200 jobs in Orion and 200 in Pontiac.

The Orion Township plant currently makes the Chevy Malibu and the Pontiac G6 sedans and was scheduled for standby idling in September. GM is phasing out its Pontiac brand by the end of 2010, and the automaker also builds the Malibu in Kansas, City, Kan.

GM’s plant location for the car became politicized because the U.S. government is slated to own 60 percent of GM once the company emerges from bankruptcy protection. Last week, the Michigan congressional delegation launched an all-out lobbying effort to land the plant.