It was reported last week that the House has reached an agreement for a “cash for clunkers” bill that would offer a million gas-guzzler owners a voucher for up to $4,500 in an effort to boost auto sales in the United States.
The legislation is now facing an obstacle in the Senate with concerns that the bill does not go far enough to protect the environment.
“Essentially what it means is that perfectly good vehicles would be scrapped, so that vehicles with below average fuel economy could be purchased,” says Sen. Dianne Feinstein, D-Calif.
The ‘cash for clunkers’ program has two main purposes – to boost sales in the struggling automotive industry and to help replace gas-guzzlers with more fuel-efficient vehicles.
Under the program, new cars would have to average 22 mpg to qualify for a $3,500 voucher. If the model gets 10 mpg better than the old car, the voucher will be increased to $4,500.
– By: Omar Rana