Senate Republicans said they would allow a vote on the so-called "Cash for Clunkers" program, likely clearing a way for the popular program to get $2 billion in additional funding. Without Republicans putting up any procedural blocks in the Senate, the program is likely to approve.
The clunkers program was meant to stimulate sluggish auto sales and get consumers to buy more fuel-efficient cars. It was approved in mid-June by Congress with $1 billion in funding, but the trade-in deal proved so popular with consumers that it quickly ran out of money. Under the program, consumers turn in their gas-guzzling cars and trucks for a voucher worth up to $4,500 toward the purchase of a new car. Its success has took many by surprise, some dealers said he program in so popular that they are running gout of cars.
The White House had warned the program could end Friday if the Senate did not add $2 billion to the program. Its original $1 billion is quickly running out because Americans have rushed to take advantage of the rebates.
Four of the top five models sold so far under the U.S. “cash for clunkers” program, aimed at boosting the auto industry, are made by foreign automakers, according to Transportation Department data. Ford Motor Focus was the top seller, followed by Toyota’s Corolla, Honda’s Civic and Toyota’s Prius and Camry, data from the department showed today.