Senate considers more funds for cash-for-clunkers programTue, 04 Aug 2009
The cash-for-clunkers program is running on fumes, and government officials are working to get more funds for the popular program before the end of the week.
A plan to add $2 billion to the fund passed the House and is being considered by the Senate, where is appears to have support, Reuters reports.
The initial $1 billion clunkers outlay is nearly exhausted. And the program helped spur sales in July to their healthiest figures in months. Ford Motor Co. reported its first sales gain in 19 months, and the program appeared to help other automakers struggling under the weight of a down economy.
The clunkers program offers up to $4,500 to trade in older rides for new, fuel-efficient models. The new cars must get a combined EPA rating of at least 22 mpg.
Similar programs have helped spur sales in Europe, and the U.S. plan has been a pet project of the Obama administration.
By Greg Migliore