After months of heel-dragging and revisions, the Senate finally passed a ‘cash-for-clunkers’ bill late Thursday night. The $1 billion program passed after 5pm last night with a vote of 91-5. President Barack Obama is expected to sign the bill into to law, possibly as early as today.
The program will offer a cash voucher between $3,500 and $4,500 to consumers that trade in their old, fuel-guzzling vehicle on a new, efficient model. In its final form, the bill was trimmed to $1 billion and three and a half months, down from $4 billion and one year.
“This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries,” Sen. Carl Levin, D-Mich., said.
The move is expected to spur about 150,000 new car sales, according to Automotive News. Several global markets have seen success with similar programs, particularly in Germany. While U.S. sales are down about 40 percent this year, sales are up by the same amount in Germany, largely due to its scrappage program.
The clunkers program will go into effect one month after being signed by President Obama and will continue until November 1. However, some lawmakers are already working on an extension to the program.
