(Source: New York Times – Wheels Blog, Sec.  LaHood’s Fast Lane Blog, U.S. News and World Report)

First of all, it’s no longer Cash-for-Clunkers. The program is now called the Car Allowance Rebate System (C.A.R.S.).  The program, which President Obama signed into law on Thursday, pays consumers up to $4,500 in credit for trading in their cars or trucks for those that are more fuel efficient. The law allocates $1 billion for the program.

The incentive program begins within 30 days of today’s bill signing by the President. The final day for an eligible purchase or lease is November 1, 2009, or when DOT exhausts the funds set aside for the program, whichever occurs first. The credit is not retroactive prior to the start of the program and cannot be applied toward the purchase of used vehicles.

Of course, there are plenty of regulations to determine what vehicles qualify for the credit. The National Highway Traffic Safety Administration, which is overseeing the program, has put together this Web site to help consumers who would like to participate in the program.

Image Courtesy: USDOT Secretary Ray LaHood's Fast Lane Blog

Today, the Transportation Secretary Ray LaHood wrote on his blog: “This program helps consumers pay for new, more fuel-efficient vehicles when they trade in less fuel-efficient cars or trucks. Stimulating the automobile industry while improving the environment and reducing fuel consumption–these are outcomes the DOT is pleased to support.

Congress and the Obama Administration recognize this is an important time for the automobile industry. And, the CARS program will help boost car and truck sales. Moreover, since the auto industry has improved vehicle safety and reduced vehicle emissions over the years, we are also excited about a program that puts vehicles on the road that are safer, pollute less, and get more miles to the gallon than the vehicles they replace.

CARS will be implemented by DOT’s National Highway Traffic Safety Administration (NHTSA). It’s a new responsibility this department welcomes; I know the folks in NHTSA stand ready to fulfill their new charge.  I encourage everyone to learn more about the program from the website, www.cars.gov, or call NHTSA’s Auto Hotline at 1-888-DASH-2-DOT (1-888-327-4236). ”

The C.A.R.S. rebate does not count on top of the trade-in value of your vehicle. In the F.A.Q. section of CARS.gov: “The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value.”

An Important FYI item: N.H.T.S.A. warns consumers of unofficial C.A.R.S. Web sites that are now popping up, reports USA Today. “Some want a lot of personal information, and talk about consumers being able to pre-register,” said Eric Bolton, a N.H.T.S.A. spokesman. “Consumers don’t have to register for this program at all.”

For those of you who are contemplating the purchase of a new vehicle under this program, here is a wonderful guide put together by the U.S. News and World Report:

10 Things You Should Know About Cash for Clunkers Car Allowance Rebate System”

1. What’s the official definition of a clunker? A driveable car made within the last 25 years, with a fuel economy rating of no more than 18 mpg. To learn more about the combined city/highway fuel-economy of your car, check out the Car Allowance Rebate System site.

2. Here’s how the program works: you trade in your old car for cash towards the purchase of a new, more efficient one. The better the mileage of the new car , the more money you’ll get towards its purchase – either $3,500 or $4,500. Check out Jalponik’s handy chart to figure out how much you might be able to claim.  The minimum combined fuel economy of a new car purchased under the program must be at least 22 mpg, while new small trucks and SUVs have to get at least 18 mpg, and large trucks have to get 15 mpg. The old cars will be salvaged once they’re turned in.

3. Consumers should act fast. The bill provides vouchers for one million purchases, and the window of time is only fron July 1 to November 1. The bill will be revisited in the fall , and some changes may be made at that time.

4. The program will cost $4 billion. Funds will come from TARP.

5. Sorry, would-be entrepreneurs: it’s off-limits to buy an old car and “flip” it for the program – the car must have been insured by the same owner for at least one year before the trade.

6. The environmental idea behind the bill is that it takes old, inefficient vehicles off of the road. But some environmentalists are actually opposed to the bill because it takes functioning cars off of the road before their time is up, and does not permit the vouchers to go towards used vehicles, even if they are more fuel-efficient. Sen. Dianne Feinstein, who sponsored an alternate bill stated that the current version undermines fuel efficiency standards and provides “handouts for Hummers.” On the other hand, some argue that higher fuel standards would disproportionately benefit foreign cars, denying American automakers their much-needed boost.

7. The economic incentive of the bill is to jump-start drowsy auto sales. According to Bloomberg, similar programs worldwide have raised auto sales 25 percent to 40 percent in Germany, 15 percent in China and 8 percent in France.

8. Even if it’s not designed entirely the way environmentalists had hoped, there are still green benefits. Says Treehugger: “One positive effect the bill could have, though, is simply to further advance the presence of ‘fuel efficiency’ as a reward term in the skeptical American consumer market. Yes, hybrids continue to sell, but not to 99 percent of the population. The bill could, albeit in a relatively minor way, serve to advance an attitude that places importance on fuel efficiency in the future.”

9. Cash for Clunkers is expected to have a great impact on the Hispanic community. That’s why the program is getting a celebrity endorsement from Dancing With The Stars’ Cristian de la Fuente and Ugly Betty’s Angelica Vale.

10. As always, buyer beware. It doesn’t make sense to trade in your vehicle unless its value is less than or equal to what you’d get in the program. Edmunds has identified a list of cars that are guaranteed to be worth less than the value of the voucher. You can find it here (PDF). Said ABC News Consumer Correspondent Elisabeth Leamy, “From a strictly consumer standpoint, the Cash for Clunkers program is not a great deal. Yes, if you are bent on buying brand new, you will save money. But the savings are nothing compared with how well you can do by buying a used car.”

(Source: Autoblog, Washington Post,  Detroit Free Press, AFP via Google)

Image Courtesy: Jalopnik

Clears Senate

After narrowly surviving an attempt by Sen. Judd Gregg, R-N.H. to strip it from a war-spending bill, the Cash for Clunkers program passed the Senate yesterday evening. Well, the $106 billion war-spending bill passed the Senate on a 91-5 vote, but the $1 billion scrapping program earlier survived Sen. Gregg’s attempt to have it removed and thus passed, as well. Now the bill makes its way to President Obama, who is expected to sign the bill into law, after which the U.S. Transportation Department reportedly has one month to figure out how the Cash for Clunkers program will be run. Since Congress reduced funding for the program from $4 billion to just $1 billion, it’s expected that the money will run out long before the program is scheduled to end on November 1.

“We are gratified that the Congress delivered on this administration priority, and President Obama looks forward to signing it into law,” according to an administration statement.

Details, Details, Details,

Vehicles purchased after July 1 will be eligible for the refund vouchers worth as much as $4,500 to turn in gas guzzlers and buy new cars that are more fuel efficient.

The agency in charge of administering the program, the National Highway Traffic Safety Administration, will work out all the details within 30 days of enactment, according to Rae Tyson, spokesman for NHTSA.

Congress predicts this will result in the sale of about 250,000 new vehicles. The funding is good only until Nov. 1 and could run out before that. In that case, the voucher pro gram — unless Congress ap propriates more — would end.

Consumers would be able to start using the vouchers as soon as the National Highway Traffic Safety Administration finalizes the rules — a process that must conclude within 30 days of the president’s approval.

Under the program, trade-in vehicles, 1984 models or newer, must have average fuel economy of no more than 18 miles per gallon. And the new car or truck must get better gas mileage than the one that was scrapped.

The payoff grows depending on the difference in the fuel efficiencies of the old and new cars. For instance, a new car getting at least 4 more miles per gallon than the old car will be eligible for a $3,500 voucher. A new car getting at least 10 more miles per gallon would get a $4,500 voucher.

To guarantee vehicles are actually roadworthy — and not just sitting on cinder blocks — trade-ins must be registered and insured to the same owner for at least a year.

Kudos & Pats in the Backs

Image Courtesy: Apture

Cash for clunkers proponents in Congress said the subsidies will spur sales.”The simple fact is that we need to get Americans into car showrooms and this is the bill that will do it,” said Rep. Candice Miller, R-Mich., in a statement.

Sen. Debbie Stabenow, D-Mich., said the program will boost jobs in auto states. “This program will provide an economic stimulus at a time when hardworking families need it most,” Stabenow said in a statement.

GM said it had decided to keep 60 of the more than 1,000 dealers with whom it had sought to terminate agreements. The reversals were made after the automaker corrected financial information that was used to evaluate which stores to keep.  Dealers applauded the Senate’s action yesterday, and some got additional good news.  John McEleney, chairman of the National Automobile Dealers Association, hailed the measure, saying it “will boost consumer confidence, get the economy going again and reduce our dependence on foreign oil. Congress is giving consumers a strong incentive to replace their older vehicles with new, more fuel efficient cars and trucks.”

Transportation Secretary Ray LaHood said “The program is an important step forward for America. “It provides incentives for consumers to buy new, more fuel-efficient cars and trucks, providing a boost to the auto industry and protecting jobs, while limiting fuel use and greenhouse gas emissions.”

The legislation comes with number-one US automaker General Motors in bankruptcy and Chrysler emerging from court protection under a government-backed alliance with Italy’s Fiat in the face of plunging auto sales.

Cash for Clunkers Update from Europe (Channel 4 via Autobloggreen)

Several other countries, such as China and Italy, have offered similar trade-in vouchers. And lawmakers point to the success of Germany’s program as indication that vouchers can turn dismal auto sales around.  At the end of the program’s first month, sales in Germany were up 21 percent from a year before. During the same period, U.S. sales slumped 41 percent. Now,  a leading provider of automotive data and intelligence says the European motor industry is showing signs of recovery following the introduction of scrappage schemes on the continent.  According to a new study by Jato Dynamics, the European automotive market may be rebounding ever so slightly from its alarming lows of early 2009.

Though new car purchases are down by just over 13 percent year-on-year, there was actually a mild 2.4 percent improvement in May over April. The German market is now 39.7% up on May 2008 – a 20.3% improvement over last month’s figures. France, meanwhile, is up 11.8% over the figures for April.  “If Germany provides a template for the other markets where scrappage schemes have been introduced, we may be at the very beginning of a period of recovery in Europe. It’s far too early to know what the sustained effects of the incentives will be, but at a time when the industry needs to see some rays of hope, it’s encouraging to witness some improvement ” says David Di Girolamo, Head of Jato Consult. Interestingly, small, fuel efficient hatchbacks are performing better than the rest of the market, which is thought to be due to the various scrapping schemes in Europe.

The US market has steadied somewhat from lows earlier this year but the sales pace in May remained 33.7 percent below that of one year ago.  Let’s hope the American consumers will follow their European counterparts in boosting the vehicle market> Eeven if it is only a liitle, the market can use any push to build its recovery.

(Source: Detroit Free Press, The Detroit News, The Auto Channel, The Examiner, EEtimes.com)

Cash for Clunkers hit a speed bump Tuesday, June 16, 2009, in the U.S. Senate. It appears some Senators have “bailout fatigue” in general and “auto industry bailout fatigue” in particular. According to The Detroit News, Republican Senators are pushing back, citing the $85 billion in aid already provided to prop up ailing and bankrupt GM and Chrysler.

Image Courtesy: Apture

Some Democrats, including Diane Feinstien (D-California) also oppose the bill in its current form because they think it does not go far enough to improve fuel economy of vehicles on American Roads (there are, of course, Republicans in the opposition, but they oppose the measure because they think we’ve already spent too much money on the auto industry). As reported earlier, a Cash for Clunkers provision was added last week to a $106 billion bill to fund the wars in Iraq and Afghanistan. The idea was to attach a Cash for Clunkers provision to an existing bill already moving through the Senate so quick passage could be assured. Wrong.

Senators who support Cash for Clunkers need 60 votes to keep the Cash for Clunkers provision from being removed from the wartime funding bill. That could prove to be a problem.

Just hours after Sen. Judd Gregg, a New Hampshire Republican, denounced the inclusion of the cash-for-clunkers amendment as “unfunded baggage” on the war spending bill this evening, Senate Majority Leader Harry Reid delayed a vote until Thursday.

“It passes on new debt. Why would we do that?” Gregg asked in a floor speech. He said he would challenge the measure “at the appropriate time.” Senate Majority Leader Harry Reid delayed voting on the bill until Thursday.

Democrats control 58 seats in the Senate. But two — Edward Kennedy of Massachusetts and Robert Byrd of West Virginia — are ill. And Democrats led by Diane Feinstein of California have opposed the legislation as it stands, saying it does not do enough to boost fuel efficiency.

The legislation narrowly survived in the House, but for reasons mostly unrelated to the car-sales measure. Republicans were near unanimous in opposing the spending bill, objecting mostly to a provision that would boost International Monetary Fund lending.

“This bad legislation runs a con game on the American taxpayers and America’s military men and women,” said Rep. Mike Rogers, R-Brighton. He and five other Michigan Republicans voted no.

Michigan Democrat Debbie Stabenow urged quick passage of the stimulus.

“It will not help as a stimulus if it is done six months or a year from now,” she said.

If the Senate approves it, the measure will go to President Barack Obama for his signature. Then the National Highway Traffic Safety Administration will have 30 days to put regulations in place for the program which – under the war spending provision – will expire on Nov. 1.

In a related news item from across the Atlantic, Phakamisa Ndzamela writing for Reuters reported that South Korea’s Hyundai Motor Company has so far received the lion’s share of new car orders under the British government’s vehicle scrappage scheme, with sales boosted by an interest in smaller cars, according to figures obtained by Reuters.

The 300 million-pound ($491.9 million) scheme invites motorists to trade in cars more than 10 years old in return for a 2,000 pound subsidy to buy a new vehicle, in an effort to help an industry which has been severely dented by the recession.

The government earlier in the week said the scrappage scheme had resulted in 60,000 new orders in the period from April 22 to June 7.  Out of the 15 car companies in the UK that Reuters contacted, Hyundai was in pole position, stating that its latest figures, which covered the period from April 23 to June 7, amounted to 8,246 new orders

Ford came second in the number of car orders at 8,050 followed by Toyota at about 7,800 vehicles.  Following are company estimates of scrappage scheme new car orders covering the period April 22 to June 17:

• Hyundai 8,246
• Ford Motor Company 8,050
• Toyota Motor Corp 7,800
• Kia Motors UK 7,300
• Volkswagen 4,591
• Vauxhall 3,909
• Nissan 3,202
• Renault 2,600
• Peugeot 2,500
• Citroen 2,500
• Honda 2,335
• BMW and MINI 1,722
• Mazda 1,355
• Volvo 1,161
• Chevrolet 950

EETimes.com reports thatcrisis in the global automotive market is far from over. In May, the European market fell by 5 percent against the same month last year. Nevertheless, within the region, local markets developed extremely different, with Germany adding 40 percent (in terms of units) and Russia declining 57 percent. The reason for the hefty differences were the public incentives for buyers who scrapped their old car and bought a new one in some countries.  The US market has declined by 37 percent over the first five months this year. In may, sales for light vehicles declined by almost 34 percent to 923.000 units.  In contrast to other countries, the incentives in the United States will be connected to the fuel efficiency difference between old and new car.  Japan also fared weak, with sales declining 17 percent in May and 22 percent for the first five months.  the emerging markets, the crisis was far less pronounced. Brazil added 3 percent, boosted by an incentive program. India declined 1 percent in May, but over the first five months the market developed slightly positive with a plus of 2 percent. In China, the economic stimulus package and the reduction of sales tax on cars led to an increase by 55 percent in May. In that month, in China 728.000 light vehicles were sold. Thus, the Chinese market has become extremely relevant for European and Japanese car exporters. As a comparison: The entire European market (not restricted to EC countries) had a volume of 1.3 million units.

In light of all that’s reported, it seems the U.S. politicans needs to do everything to promote Automobile sales, including the passage of this Cash for Clunkers bill.  Wrangling over the details of a bill that can spur auto sales could have some severe consequences on the economy.  Will they do it?  Let’s hope so!

(Source: Associated Press, The Detroit News, Streetsblog & Jalopnik)

With the “Cash for Clunkers” bill successfully clearing the House floor, there is a lot of chatter about the fate of this bill in the Senate.   The auto industry and Michigan lawmakers are pushing for quick Senate action on this legislation to boost auto sales, after the House overwhelmingly passed the bill Tuesday.

But it remains unclear when Senate supporters may overcome the objections of Senate appropriators and a group of senators who say the House proposal doesn’t do enough to improve fuel efficiency on the nation’s highways.

The House approved its version Tuesday, 298-199, with substantial Republican support despite the opposition of House leaders including Minority Leader John Boehner and whip Eric Cantor.

Sens. Debbie Stabenow, D-Lansing, and Sam Brownback, R-Kan., introduced a nearly identical bill in the Senate, but had to withdraw an attempt to get a floor vote last week.

Opposition came from members of the Senate Appropriations Committee, which objected to funding provisions of the bill, and from senators who want tougher fuel economy requirements.

Sen. Diane Feinstein, D-Calif., introduced a competing proposal on Monday.   Feinstein’s proposal would require drivers to achieve a 25 percent fuel-efficiency increase before receiving a tax credit for ditching their clunkers. But Michigan Sen. Debbie Stabenow (D) is pushing for a trade-in tax credit that’s very similar to Sutton’s — truck owners would only have to increase their fuel efficiency by 2 miles per gallon to be eligible.  The requirements for car trade-ins aren’t much better under the Stabenow and Sutton plans, with a mere4 mpg increase in fuel economy triggering the $3,500 tax credit.  With Rep. Sutton’s plan winning the House approval this week, Stabenow’s Senate counterpart could potentially get a leg up over Feinstein’s.

While we await the Senate action, I put together a quick side by side comparision of the two bills  (data from Associated Press).

Data Courtesy: Associated Press

Also, our friends at Jalopnik have compiled an awesome visual that simplifies the rs details of this “Cash for Clunkealong” with some great analysis about the worthiness of the program for buyers.

First of all, operable vehicles are required and there aren’t many people driving around with vehicles worth less than $1,500. Many old crappy cars, in fact, can still demand up to $2,500 on the open market. This means you’re going to get, max, $2000 for your trade-in. The least valuable qualifying cars, of course, are actually the more efficient compact vehicles, which makes getting the necessary 10 MPG improvement unlikely.

The second problem, stemming from the first, is quantifying the number of people who actually drive around in cars worth less than $2,500 and can actually afford a new car. Our instinct tells us there aren’t many people. This means people taking advantage of the program will, typically, have to be excited by the prospect of saving $1,000 or $2,000. These people should already have been swayed by intense discounting from automakers in recent months.

Image Courtesy: Jalopnik

Click here to read the entire article.

(Source:  Autoblog & Detroit Free Press)

The U.S. House approved the “cash for clunkers” legislation earlier today, paving the way for consumers to snag up to $4,500 for trading in their older vehicles for new, more fuel efficient transport.

The bill, which passed 298-119, drew overwhelming support from automakers, local business groups and dealers who claimed the passage could boost sales – further aiding GM and Chrysler’s “reinvention” – during the economic downturn.

The House bill sets aside $4 billion to pay for electronic vouchers given to owners of older vehicles toward new models. With auto sales running at their lowest rate in four decades, the Congressional Budget Office estimated the bill could spur sales of about 625,000 vehicles; backers are hoping for 1 million.

The act “will shore up millions of jobs and stimulate local economies,” said Rep. Betty Sutton, D-Ohio. “It will improve our environment and reduce our dependence on foreign oil.”

The government’s interest in goosing the vehicle market extends to its ownership inGeneral Motors Corp. and Chrysler LLC, both of which are counting on a healthier U.S. market in the coming years for survival.

“The auto industry is going through a tremendous restructuring,” said Rep. Sander Levin, D-Royal Oak. “If there is not increased demand, that restructuring cannot succeed.”

Under the plan, owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model.

(Source: Streetsblog & Rotor.com)

The House is poised this week to take up the so-called “cash for clunkers” bill, which aims to boost the slumping U.S. auto market by giving out tax credits of $3,500 and up to anyone who trades in a gas-guzzling car for a more efficient model.

With the Senate Majority Leader threatening to make Senators work five days a week to speed up work on legislative priorities, lawmakers expect to finish a war supplemental bill this week that would include a provision for cash for clunkers and then Congress will turn its attention to healthcare and climate change legislation.

House Democrats must settle the issue of whether to include in the war supplemental a provision that would give car buyers a voucher worth up to $4,500 for trading gas-guzzlers for more fuel-efficient vehicles.  There is tremendous bipartisan support for this proposal, especially with the recent bankruptcy of General Motors.

The likely passage of Sutton’s bill this week could be bad news for a stronger “cash for clunkers” plan that’s being promoted by Sen. Dianne Feinstein (D-CA), who displayed welcome candor last month in calling the Sutton plan “the auto industry’s version” of “cash for clunkers” and “unacceptable” to American drivers.

Feinstein’s proposal would require drivers to achieve a 25 percent fuel-efficiency increase before receiving a tax credit for ditching their clunkers. But Michigan Sen. Debbie Stabenow (D) is pushing for a trade-in tax credit that’s very similar to Sutton’s — truck owners would only have to increase their fuel efficiency by 2 miles per gallon to be eligible.

Feinstein’s proposal would require drivers to achieve a 25 percent fuel-efficiency increase before receiving a tax credit for ditching their clunkers. But Michigan Sen. Debbie Stabenow (D) is pushing for a trade-in tax credit that’s very similar to Sutton’s — truck owners would only have to increase their fuel efficiency by 2 miles per gallon to be eligible.

(Source:  The Detroit News & SFGate.com)

Supporters have dropped an attempt to add “cash for clunkers” legislation to a tobacco regulation bill now before the Senate, a setback in efforts to boost car sales with federal subsidies.

“There are technical details to work out and the senator continues to look for a vehicle to pass this very important piece of legislation,” said Brad Carroll, a spokesman for Sen. Debbie Stabenow, a co-sponsor of the bill.

Two congressional aides said the measure was derailed by objections from the Senate Appropriations Committee to using money from the $787 billion economic stimulus package for the measure, which would offer up to $4,500 credits for consumers trading in older, low-gas-mileage vehicles.

In January, Sen. Dianne Feinstein, D-Calif., introduced a bill, S247, that would give vouchers to people who turn in a car or truck that gets 15 or fewer miles per gallon to a dealer that scraps it.

Rep. Betty Sutton, D-Ohio, introduced one in the House, HR1550. A compromise version was attached to the 900-page energy bill that was passed last month by the House Energy and Commerce Committee.

Sen. Debbie Stabenow, D-Mich., introduced an almost identical one in the Senate. Her bill, S1135, would provide vouchers of $3,500 or $4,500, depending on the difference in gas mileage between the clunker and the new vehicle. The vouchers could only be used to buy or lease new vehicles, not for used vehicles or mass transit.

Environmentalists oppose the two industry-supported bills because they would provide vouchers to people who scrap more fuel-efficient vehicles (18 mpg or less) than under the Feinstein proposal (15 mpg or less).

Last month, Sen. Feinstein proposed an alternative that is less stringent than her original bill but stricter than Stabenow’s. For details, see links.sfgate.com/ZHHC.

It’s not clear whether the Senate will back the Stabenow bill, the new Feinstein approach or a compromise.

“Fiscal conservatives and environmentalists oppose the more permissive Stabenow bill as an expensive subsidy for the ailing auto industry, while union and manufacturing interests oppose the stricter Feinstein approach, which would likely favor fuel-efficient imported vehicles,” said Benjamin Salisbury, an analyst with FBR Capital Markets, in a report.

“The Senate could vote on both amendments and add the most popular one to unrelated legislation giving the Food and Drug Administration regulatory authority over tobacco products,” Salisbury wrote.

Idea likely to stick around

That didn’t happen Wednesday, as many expected. But with President Obama in favor of cash for clunkers, the idea is not likely to die.

Becker hopes Congress will not rush into passing a bill without enough research and debate to determine how much the program will cost and who will benefit most. “Somebody might come along and do clunker dating,” matching up people who want to buy new cars with people who have clunkers, he says.

He adds that Germany started a 1.5 billion euro cash-for-clunkers program this year and it has already swelled into a 5 billion euro program.

Consumers waiting to buy a new car until a bill passes should first figure out if their existing car would qualify under the scrapping plan. If so, the next question is whether the voucher would be worth more than the price they would get if they sold or traded in their car. If so, they should figure out whether the new car they want to buy would qualify. With so many unknowns remaining, it’s hard to reach a conclusion.

As reported in yesterday’s post, the House Energy and Commerce Committee Chairman Henry A. Waxman, Subcommittee Chairman Edward J. Markey, Chairman Emeritus John D. Dingell, Congresswoman Betty Sutton, Congressman Jay Inslee, and Congressman Bart Stupak reached an agreement on a “Cash for Clunkers” program that will help the auto industry while cleaning our air. This agreement is based on H.R. 1550, introduced by Congresswoman Sutton, and H.R. 520, introduced by Congressman Inslee.  The fact sheet published on the Committee’s website offers the following detail:

Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values

• Passenger Cars: The old vehicle must get less than 18 mpg. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

• Light-Duty Trucks: The old vehicle must get less than 18 mpg. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

• Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

• Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.

Here is a PDF copy of the Fact Sheet:

(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON – The Obama administration and U.S. House members have reached a compromise over a “cash for clunkers” bill that would offer as many as one million vehicle buyers a voucher for up to $4,500 each to spur car and truck sales.

(Source: Autoblog, Telegraph UK) 

After weeks of dithering, the Government announced a car scrappage scheme in yesterday’s Budget.  Anyone with a car registered after July 31, 1999 will get a cash incentive of £2,000 to trade in their old vehicle for a brand new one.

However, only £1,000 will come from the Government, with the remaining £1,000 coming from car firms; the motor industry had hoped that the Government would foot the entire £2,000 bill.

Participants will be able to buy any new vehicle, including small vans, rather than just low pollution models. Motorists taking advantage of the scheme must have owned the car for at least one year; it will also have to be taxed, insured and have a current MoT in order to qualify.

About £300 million has been set aside to fund the scheme, to be launched in mid-May. About 300,000 consumers are expected to benefit until the scheme ends in March 2010, unless funding runs out before then.

In the below video, you can hear Mr. Tony Whitehorn, Managing Director of Hyundai UK, welcoming Chancellor Alistair Darling’s ‘cash for bangers’ scheme announcement in the Budget.