“Cash for Clunkers” Program Passes Senate

WASHINGTON, D.C. – The Popular 'Cash for Clunkers' program will boost new car sales and protect American jobs. This bill had cleared the House and the The US Senate approved passage of the emergency supplemental, which includes a “Cash for Clunkers” program to boost new car sales.

This provision will save American jobs and increase America’s energy security. Senator Barbara Mikulski was an original co-sponsor of the provision. It now heads to President Obama to be signed into law.

Some conservative House Republicans criticized the bill. Minority Whip Eric Cantor, R-Va., said he opposed the bill because it did not cover used cars. Rep. Jeff Flake, R-Ariz., called it "a clunker of a bill" that defied the laws of economics by manufacturing demand for cars.

“This program will help get people back into the showroom and back buying cars,” Senator Mikulski said. “It will protect and save American jobs, and get polluting jalopies off our streets and highways. It is good for our economy, good for our environment, and good for our energy security.”

The Cash for Clunkers program will provide incentives to consumers – federal vouchers of up to $4,500 – to trade in their old gas-guzzling vehicles for new ones that get better mileage and are better for the environment.

Owners of cars and trucks that get less than 18 mpg and were made in 1984 or after will get a voucher of between $3,500 to $4,500 for a new car, priced at $45,000 or less, that rates at least 4 mpg better than the vehicle they traded in. The bigger the difference in mpg, the greater the voucher. A 4 mpg improvement would earn a $3,500 voucher, while a 10 mpg improvement would earn a $4,500 voucher.

The program, which will run from July 1st to November 1, 2009, will help jump-start new car sales, and protect jobs that rely on a robust American automobile industry. Similar programs in countries all over the world have significantly increased the demand for new car sales. For instance, new vehicle sales in Germany increased 25 to 40 percent after implementing a similar program earlier this year.

Senator Mikulski has led Senate efforts to keep America’s auto industry strong and protect and save the millions of jobs that depend on it. Earlier this year, Senator Mikulski’s amendment giving tax relief to new car buyers was signed into law as part of President Obama’s American Recovery and Reinvestment Act.

Rightardia had reported on this bill earlier when it had cleared the House. 

For more information, go to: mikulski.senate.gov/Newsroom/PressReleases/record.cfm?id=311378.

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