Canada Exploring $3,500 Cash-for-Clunkers Program

The Canadian government is currently examining if it will pass a cash-for-clunkers bill that could see consumers get up to $3,500 (CDN) towards a new car when they trade in their older and less fuel-efficient model.

Environment Minister Jim Prentice said a decision on the matter will be made within the next 60 days, as the government continues to be pressured by automakers. The government has also received added pressure after U.S. President Barack Obama signed off on a similar program last month that would see U.S. consumers get as much as $4,500 (USD) towards a new car when they trade in an old one with poor fuel economy.

Automakers are pressuring the government to help out in an effort to boost auto sales. Vehicle sales in Canada, however, are not suffering to the same extent that they are in the U.S. According to the Association of International Automobile Manufacturers of Canada (AIAMC), vehicle sales were down just 13.2 percent in June with year to date sales down 18.3 percent. Passenger vehicle sales were down 22.9 percent, while light duty truck sales were actually up 1.5 percent.

[Source: The Vancouver Sun]

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