Lawmakers are considering plans to help Americans buy fuel-efficient cars and boost sales for automakers.
(Lisa Poole/Associated Press/File)
Car buyers may get $4,500 vouchers
Lawmakers are considering plans to help Americans buy fuel-efficient cars and boost sales for automakers.
(Lisa Poole/Associated Press/File)
Bloomberg News
/
May 8, 2009
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WASHINGTON - A group of US senators has agreed to a plan that would give consumers as much as $4,500 to purchase a fuel-efficient car or truck, Senator Debbie Stabenow said.
The proposal tracks a deal struck in the House this week, said Stabenow, a Michigan Democrat. Congress needs to move quickly on the plan to respond to a drop in auto sales, she said.
The goal is to stabilize sales at struggling automakers, including General Motors and Chrysler, which are surviving on taxpayer aid.
The Senate plan, like the House measure, would provide rebates to consumers for any new car that meets certain fuel-efficiency requirements. Only vehicles getting 18 miles per gallon or less would qualify for trade-in under the Senate plan. Buyers would get a $3,500 voucher for a new model with a 5 mile per gallon improvement. Those buying a new car that gets at least 10 miles per gallon more or a light truck with a 5 miles per gallon improvement would get a $4,500 voucher.
The plan relies on funds already set aside for stimulating the economy, said Senator Sam Brownback, a Kansas Republican. Estimates put the cost at $3 billion to $4 billion.
Automakers are pushing Congress to approve such a measure after the success of a similar program in Germany. France and Italy also provide payments to scrap older vehicles.
© Copyright 2009 Globe Newspaper Company.
