Neil Roland-Automotive News
The U.S. Senate passed a scaled-back $1 billion cash-for-guzzlers bill and sent it to President Barack Obama for his signature.
The 91-5 vote took place after 5 p.m., after the Senate beat back a Republican attempt to strip the auto proposal from a $106 billion spending package aimed primarily at aiding U.S. troops in Iraq and Afghanistan.
The $1 billion initiative that passed the House earlier this week seeks to boost auto sales and increase the fuel economy of U.S. cars and light trucks. It would offer $3,500 to $4,500 cash vouchers for about 3½ months to consumers who trade in their cars for new, more fuel-efficient vehicles.
"This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries," Sen. Carl Levin, D-Mich., said on the Senate floor today. It also will "encourage consumers to purchase more fuel-efficient vehicles," he said.
Congressional Budget Office data suggest the bill would result in the sale of 150,000 new cars, said Nichole Francis Reynolds, chief of staff to Rep. Betty Sutton, D-Ohio. Sutton sponsored the original bill.Similar programs in Germany, China and France have resulted in substantial sales increases since the end of 2008
Full story also on MSNBC.com
http://www.msnbc.msn.com/id/31432867/ns/politics-capitol_hill/
