According to The Detroit News, House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) have said they would like to fast track the Cash-for-Clunkers bill through the legislative process. There's a legitimate fear that new car sales will further stagnate while buyers wait for the bill to pass, which could take a very long time if it's attached to the much broader climate change legislation. Says Reid:
"Cash for clunkers is really important. Every country in the world is selling less cars than they did before except one country: Germany. And in Germany they have a program for cash-for-clunkers. We need to do the same."Germany, the first country to implement a car scrapping scheme, has seen new car sales improve by over 20% in each month since the plan's launch in February. Under the proposed legislation in the U.S., new car buyers would be eligible for a voucher worth up to $4,500 for trading in an older vehicle if the replacement manages at least 10 mpg better than their so-called clunker.
[Source: Detroit News | Photo: Tommy Draper]