Calif. Town Passes Local Auto Stimulus Plan
{{#rendered}} {{/rendered}}The Northern California city of Tracy is taking economic stimulus into its own hands.
On Tuesday, the city council passed a resolution that will give buyers of new cars from dealers within the city a $500 gift card that can be redeemed at local merchants participating in the program, the Tracy Press reported.
The city plans to spend $608,000 on the program which will make 800 of the cards available to customers of the Tracy Auto Mall, a collection of dealerships that sell cars from Chevrolet, Ford, Dodge, Honda and other brands.
{{#rendered}} {{/rendered}}According to the Mercury News, auto sales of about 8,000 vehicles each year are responsible for 20 percent of the city's revenue, but have suffered a 50 percent drop this year. A Pontiac/GMC/Cadillac dealer at the mall expects to go out of business this month.
The gift card program is part of a larger $100 million Local Investment Stimulus Program that city leaders hope will create 3,700 new jobs by the end of 2010.