The government screws-up everything it touches. Look at the Cash-for-Clunkers program - many dealers voluntarily decided "we're done" because they're not getting paid their ~$4000 per car allowance. And also the clunker-cars were *destroyed*. Why? Why weren't they recycled for their parts? Stupid, stupid, stupid. And not environmentally-friendly.
The clunker cars were recycled for parts. There were interviews on CNN, NPR, and surely plenty of other news organizations with the heads of automotive recyclers who suddenly became celebrities-for-a-minute when people started wondering about the crushed cars.
They can't be re-sold, but that was part of the point. The will be re-used.