How the 'Cash for Clunkers' Plan Would Help New-Car Buyers

Auto industry and congressional supporters of legislation to reward people who trade in clunkers for new, fuel-efficient vehicles are looking to build pressure on the administration to back it.

The legislation, H.R. 1550, would pay up to $5,000 for trading in a vehicle at least eight years old. "It's a triple winner," said a Detroit executive based in Washington. "It helps the economy, it saves fuel and oil, and it helps the environment."

So far, the administration hasn't aired an opinion on the Cash for Clunkers legislation, also called the CARS Act, though the president's auto task force has indicated support. It has the backing of House Speaker Nancy Pelosi, the UAW, and most automakers.

Those pushing the legislation said that they plan to step up pressure on the administration to back it, especially as the industry looks a week ahead to reporting historically poor sales figures for March autos. "Sales reports will be pretty miserable," said the executive.

The supporters are considering advocacy ads and plan to highlight comparable programs unveiled overseas. In Germany, for example, a similar program has boosted auto sales by 20 percent for American carmakers.

The CARS Act would cover about five to 10 fuel-efficient cars and trucks from each North American carmaker or assembler in the program. The following companies would be included: General Motors, Chrysler, Ford, Honda, Hyundai, Mazda, Mitsubishi, Nissan, Toyota, and Volkswagen.

Vehicles expected to meet the CARS Act fuel-efficiency requirements:

• Chevrolet: Aveo, Cobalt, Colorado, Equinox, HHR, Malibu, Malibu Hybrid, Traverse
• Chrysler: PT Cruiser, Sebring, Town & Country
• Dodge: Avenger, Caliber, Caravan, Journey
• Ford: Edge, Escape, Escape Hybrid, Flex, Focus, Fusion, Fusion Hybrid, Ranger, Taurus
• Honda: Accord, Civic, CR-V, Element, Odyssey
• Hyundai: Santa Fe, Sonata
• Jeep: Compass, Patriot
• Mazda: B-Series, Mazda 6, Tribute, Tribute Hybrid
• Mercury: Milan
• Mitsubishi: Eclipse, Galant, Outlander
• Nissan: Altima, Quest, Sentra, Versa
• Pontiac: G6, Solstice, Vibe
• Saturn: Vue
• Toyota: Avalon, Camry, Camry Hybrid, Corolla, Corolla Matrix, Highlander, RAV4, Tacoma, Venza
• Volkswagen: Jetta

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