President Obama & U.S. House members reach compromise on “cash for clunkers” deal

May 5, 2009 at 3:52 pm

(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.

The bill still must pass Congress and its price tag was not immediately available. But the compromise gives the bill backing from Michigan representatives, several automakers and other groups who might have had enough opposition to block it.

The vouchers would apply to passenger cars, trucks and work vehicles. The old passenger cars and trucks being traded in under the plan would have to get less than 18 miles per gallon in combined driving. 

New cars would have to get at least 22 m.p.g. to qualify for a $3,500 voucher; if the new model gets 10 m.p.g. more than the old one, the voucher would increase to $4,500.

New trucks would have to get at least 18 m.p.g., and get at least 2 m.p.g. better than the old model to get the $3,500 voucher and 5 m.p.g. better for the $4,500 voucher.

The vouchers would be available for one year and up to one million customers.

Click here to read the entire article.

 FYI,  NY times has made available the following documents that can help you understand what vehicles are eligible in the competing version of the Cash of Clunkers legislation

List of Eligible Vehicles Under the Rep. Steve Israel Plan (from the American Council for an Energy Efficient Economy)

List of Eligible Vehicles Under the Rep. Betty Sutton Plan (from Representative Sutton’s office)

Over the past months, TransportGooru has published a series of articles on this topic, following developments in the US, UK and Germany.  For the ones interested in learning about the schemes in Germany (that is now labelled a “roaring success”) and US & UK (the introduction of a similar scheme in the works but still a long way away from getting it done), here is a list of articles that TransportGooru published.

U.S. Cash-for-Clunkers deal reportedly nearing congressional compromise

Following Germany, Britain introduces “Cash for clunkers”scrappage scheme. U.S. is next?

Time examines the “Cash for Clunkers” initiative: A Deal to Help Detroit — and the Planet?

Goodbye, Gas Guzzlers? – Washington Post editorial analyses the keys to succesful implementation of US’ Cash for Clunkers” initiative

Where the US stands in pushing “Cash for Clunkers”- Four bills in Congress; Details Needed

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