Washington, D.C. – A “Cash for Clunkers” bill that would provide consumers with up to US$4,500 in vouchers to scrap their old cars and purchase new ones has passed the U.S. House of Representatives.
The bill, introduced by Representative Betty Sutton and officially known as the Consumer Assistance to Recycle and Save (CARS) Program, passed on a vote of 298 to 199. The next step is for the bill to be added to the Supplemental Appropriations bill conference report, which must be approved by both the House and Senate.
Supporters during the floor debate included Mazda, Ford, GMC, Chrysler, Toyota and Honda.
Similar programs have been adopted by many countries and have produced significant increases in new vehicle sales, according to the Association of International Automobile Manufacturers (AIAM). “We are pleased that the House of Representatives passed legislation that we believe will boost the recovery of the U.S. auto market and provide a real shot in the arm of the American economy,” said AIAM president Michael Stanton.