"cash for clunkers’ deal"

[rickaren]

Lawmakers inch toward ‘cash for clunkers’ deal

Posted Wednesday, Apr 29, 2009, 2:41 pm in Employee News

Lawmakers were inching toward an agreement Tuesday on a “cash for clunkers” bill to boost U.S. auto sales—a measure one consulting firm said could spur as much as $25 billion in economic activity, The Detroit News reported.

People familiar with the talks said House negotiators were talking toward a compromise between two competing proposals: one advanced by auto-state lawmakers hoping to boost domestic carmakers, and another by environment-minded members that would put more emphasis on replacing older cars with more fuel-efficient models, The News said. There are similar competing versions pending in the Senate, the paper reported.

According to the article, the idea is to offer cash incentives for consumers to trade in their older cars for new models. Similar measures have helped boost auto sales in Europe and South America—where, as in the United States, the recession has badly damaged sales, The News said. Supporters also say replacing older, less fuel-efficient autos with new models would reduce pollution and save gasoline. President Barack Obama endorsed such a program last month, the paper said. (The Detroit News)