House passes ‘clunkers’ plan to boost car sales

The House approved a “cash for clunkers” bill Tuesday that aims to boost new auto sales by allowing consumers to turn in their gas-guzzling cars and trucks for vouchers worth up to $4,500 toward more fuel-efficient vehicles.

President Obama has encouraged Congress to approve consumer incentives for new-car purchases as part of the government’s work to restructure General Motors Corp. and Chrysler. The House approved the bill 298 to 119.

Supporters pushed for the measure to stimulate car sales and increase the number of fuel-efficient vehicles on the nation’s highways.

The auto industry has sought the incentives after months of poor auto sales. In May, overall sales were 34% lower than a year earlier.

“Stimulating sales is the only way to get the auto industry back on its feet,” said Rep. Donald Manzullo (R-Ill).

Opponents said the bill failed to include incentives for used vehicles and represented an artificial incentive for the industry.

“It’s defying the laws of economics and saying we can manufacture enough of a demand to keep the auto industry afloat,” said Rep. Jeff Flake (R-Ariz).