‘Cash-for-clunkers’ bill clears House

The “cash-for-clunkers” legislation cleared another hurdle Tuesday, winning passage in the U.S. House of Representatives. That moves the proposed plan closer to reality and would offer up to $4,500 in vouchers to consumers who trade in older cars for new, more fuel-efficient rides.

The bill now moves to the Senate, where a slightly different version that emphasizes fuel economy is being proposed by Sen. Dianne Feinstein, D-Calif., and other senators.

The $4,500 credit would apply to buyers who trade in their old cars for ones that get at least 10 mpg better. It’s a $3,500 voucher for a lesser improvement.

The cash for clunkers bill is similar to plans in Europe, which appear to have propped up new-car sales amid flagging economic conditions. President Barack Obama has supported the plan as a way to help struggling automakers and improve the fuel efficiency of the cars and trucks on the road.

The plan also requires the turned-in cars be crushed, a move that’s drawn criticism from some car groups and could take plenty of still-sound and potentially future collector cars off the road. It only applies to cars from the 1985 model year and on. The trade-in also must be drivable.

The House passed the bill by a margin of 298-119.

“This legislation will ensure that we have a strong manufacturing base and get more fuel-efficient vehicles on the road, which is essential to our economy, to our national security and a clean, green future,” House Speaker Nancy Pelosi said in a statement.

By Greg Migliore