I would hate to see classic cars get crushed because of this bill. Especially if someone has a rusting away old classic that's still drivable and they use it for this program.
But we also have a 1989 Civic wagon AWD that's rotting away in the garage and we could take advantage of this and make out crazy like.
But we also have a 1989 Civic wagon AWD that's rotting away in the garage and we could take advantage of this and make out crazy like.
$5,000 voucher pushed for new fuel-efficient vehicles
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- An Ohio congresswoman has proposed a wide-ranging program to give consumers up to a $5,000 cash voucher to buy new, more fuel-efficient vehicles.
Rep. Betty Sutton, D-Ohio, proposes giving consumers vouchers in exchange for turning in vehicles at least eight years old, dubbed the Consumer Assistance to Recycle and Save bill, or CARS Act.
"The CARS Act will achieve many goals: consumers will finally get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of CO2; and the auto industry will get a jumpstart to spur sales," Sutton said. "This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries, upon which millions of American families depend for employment."
Consumers would have to buy a more efficient vehicle than their current model to qualify.
The vehicles would also have to have a price-tag of $35,000 or less. It would also give higher-value vouchers for vehicles assembled in North America -- up to $5,000 -- versus up to $4,000 vouchers for vehicles assembled outside North America.
GM chairman and CEO Rick Wagoner told reporters today in Washington that a bill to offer cash for older cars could benefit the industry.
"These kind of programs can have a huge impact," Wagoner said, adding that it could boost consumer confidence. "It would be very helpful to have something like that here in the United States."
He pointed to a roughly 15 percent increase in auto sales in Germany last month over the same period a year ago after they introduced a similar program.
Consumers could also turn in their vehicles in exchange for a mass transit voucher.
"By providing a transit voucher option, this bill will also encourage the use of mass transit, which will similarly benefit our economy and environment," Sutton said.
Ford Motor Co. praised the bill.
"The 'CARS Act' legislation is a win-win-win for consumers, the environment and energy independence. By providing incentives to purchase a new vehicle, the legislation would help reduce consumer costs, jumpstart the economy and help support millions of good jobs in every state across the nation," Ford said in a statement.
The bill could also help speed the improvement of the auto fleet's fuel efficiency. Automakers must increase the efficiency by at least 40 percent to a fleetwide 35 mpg by 2020.
Office of Management and Budget director Peter Orszag told reporters Tuesday that the administration is "on track" to finalize the first new requirements -- the 2011 model year fuel efficiency standard -- under the 2007 energy law by March 30.