Cash for Guzzlers Bill Loping Through The Senate

Washington DC May 13, 2009; The AIADA newsletter reported that Senators from both parties are reportedly planning to introduce a cash-for-guzzlers bill this week that is identical to the legislation hashed out last week in the House.

According to Automotive News, the legislation would provide vouchers of up to $4,500 to people who trade in cars and trucks for new, more fuel-efficient vehicles assembled anywhere in the world, using the stimulus bill to fund its hefty price tag of $3.5 billion to $4.5 billion.

Sponsors of the bill include Sens. Sam Brownback R-Kan., Dick Durbin D-Ill., Sherrod Brown D-Ohio, and Carl Levin D-Mich.

Industry insiders report that the bill may help lift May and June light-vehicle sales in the United States to the 10-million-unit rate. The U.S. seasonally adjusted annual sales rate averaged 9.4 million light vehicles through April, down from 13.2 million vehicles sold in 2008 and 16.2 million in 2007.

Nasdaq reports that Senate Majority Leader Harry Reid is unsure when the legislation will receive consideration by the full Senate, but that he hopes it will be accomplished soon.

While House lawmakers intend to attach the House legislation to wider energy legislation, Sen. Reid is reportedly considering options for the Senate bill.

Bloomberg News Video Story-Cash For Clunkers