US government urges Senate to support clunkers program

• Source: Xinhua
• [08:05 August 04 2009]
• Comments

The US government urged the Senate to speed more funding for the popular cash for clunkers rebate program within this week, according to a White House spokesman on Monday.

The 1 billion US dollars program, officially called the Car Allowance Rebate System, or CARS, ran out of money last week. The House voted to provide another 2 billion dollars before leaving for summer break last Friday. But the Senate must also vote before its summer vacation starts August 7.

President Barack Obama's chief spokesman Robert Gibbs says anyone who wants to trade in a less fuel-efficient vehicle for a higher-mileage one should do so. But if the Senate fails to act by Friday, it is unlikely the program will be available next weekend and beyond.

The program offers owners of old cars and trucks 3,500 or 4,500dollars toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle.

Congress approved the plan early in July, but the government considered suspending it last Thursday after an overwhelming response threatened to deplete the 1 billion dollars allocated for the rebates.

But the program continued and the House voted to allocate another 2 billion dollars to keep the sales going. The program's fate hangs on whether the Senate will vote to extend more funds this week.

Considered as a successful stimulus program for the ailing auto industry, cash for clunkers drove a surge of shoppers into dealerships over the last week.

Ford Motor Co. reported Monday that its July sales rose 2.2 percent over June's figures, the first US auto sales increase in nearly two years. Other major automakers, such as Chrysler said sales showed signs of stability.