Auto News

AutoGuide News Blog


The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.

Cash-for-Guzzlers Bill Proposed by Democrats

Bill aimed at promoting sale of fuel-efficient cars

 |  May 05 2009, 1:36 PM

2009 jeep commander 144

The Democrats have proposed an incentive program to help-out potential car buyers and the U.S. auto industry. The only problem is, the gas-for-guzzlers legislation isn’t aimed at boosting car sales in the general sense.

The bill would provide up to $4,500 for people who trade in low mpg cars and trucks, to spend on a more fuel-efficient vehicle. Those who trade in a vehicle that gets less than 18 mpg for one that achieves more than 22mpg would get a $3,500 voucher, while $4,500 would be offered if the new vehicle gets 10 mpg (or more) than the vehicle being traded in.

All the terms of the bill are not yet available and it’s not yet clear if a vehicle would have to be a certain age to quality.

Michigan Democrat John Dingell said that if the bill was passed by Congress and approved by President Obama it could lead to as many as one million new car sales.

“This program will spur consumer demand for new vehicles, thereby injecting much-needed cash into our ailing domestic automakers,” Dingell said, adding that it would also lead to “meaningful reductions in energy use by American drivers.”

That final point does, however, seem to be more of the focus of the cash-for-guzzlers bill, which by both its name and content is aimed at promoting the sale not of vehicles in general but of fuel-efficient vehicles.

Earlier today we reported that the German government’s incentive program continues to be a huge success. That “scrappage” plan has produced near-record car sales in Germany by offering incentives to those who trade in old vehicles for new ones, regardless of where the vehicle is built or how much fuel it consumes.

[Source: Automotive News]