The U.S. government's $1 billion "cash for clunkers" program to spur new car sales is "suspended" after running through the money six days after it began, Senator Debbie Stabenow said.
Stabenow, a Michigan Democrat, and other lawmakers called for an infusion of taxpayer money to subsidize more new-vehicle purchases in the effort to revive dealerships and automakers while getting older, less fuel-efficient vehicles off the road.
"It is amazing that 'cash for clunkers' would be this successful this quickly," said Stabenow in an e-mailed statement yesterday. "I urge Congress and the administration to provide additional funding."
Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the program to generate about 250,000 vehicle sales and to have enough money to last until about Nov. 1.
"Any doubt that the CARS program would jump-start auto sales is completely erased," said Greg Martin, a General Motors Co. spokesman. "More than 200,000 cleaner, more fuel-efficient cars are on the road and a vital industry gets a needed boost. We hope there's a will and way to keep the CARS program going a little bit longer."
Officials at the White House and the Transportation Department declined to comment on the program's status. A White House official, who asked not to be identified because no announcement had been made, said the administration was assessing the situation facing what had turned out to be an overwhelmingly popular program.
Transactions Honored
All valid transactions that have taken place so far under the clunkers program will be honored, the official said.
The Transportation Department had said this week that the money wasn't running out.
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