Democrats seek Republican support for car rebates
By KEN THOMAS
Associated Press Writer
(AP:WASHINGTON) Facing a White House deadline, Senate Democrats are struggling to win over enough reluctant Republicans to pass a $2 billion extension of a popular rebate program that gives consumers up to $4,500 to trade in their old gas guzzlers for more fuel-efficient vehicles.
Senate discussions are expected to continue Tuesday after the Obama administration and backers of the "cash for clunkers" program picked up support from three lawmakers who wanted the program limited to the purchase of even more fuel-efficient vehicles. Data released by the administration showed the new vehicles purchased under the program were 61 percent more fuel efficient than the trade-ins.
Republican Sen. Lindsay Graham said Tuesday morning he thinks the Senate will approve it. "I think the Senate will act this week and get some of the clunkers off the road," Graham said in an interview with NBC television.
The fuel efficiency gains helped sway some lawmakers who had complained that smaller rebates of $3,500 were going to people buying new cars that get as little as four more miles per gallon (less than 2 more kilometers per liter) than the gas-guzzlers they traded in.
As of Monday afternoon, $563.8 million worth of rebates had been processed through the government program, representing 133,767 new vehicles, according to figures provided by the Department of Transportation.
Car shoppers can still take advantage of the incentives, but the White House said the incentives were unlikely to continue into the weekend if the Senate fails to approve the funding. White House spokesman Robert Gibbs estimated the additional $2 billion would allow consumers to take advantage of the incentives through September.
Car companies said the clunkers program was helping their bottom line. Ford said its sales rose 2.4 percent in July from the same month last year, its first year-over-year increase since November 2007, while Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months, helped by "clunkers" deals. Other automakers showed gains, giving ammunition to supporters of the car rebate program.
Transportation Secretary Ray LaHood, a former Republican congressman, said some 80 percent of the traded-in vehicles are pickups or sport utility vehicles, meaning many gas-guzzlers are being taken off the road. The Ford Focus is a leading replacement vehicle. General Motors Co., Chrysler Group LLC and Ford Motor Co. accounted for 47 percent of the new vehicles purchased.
Most consumers are buying smaller, more fuel efficient vehicles under the program, according to a list of the top-10 selling cars released by the National Highway Traffic Safety Administration, which is administering cash for clunkers.
That includes Honda Civics, Toyota Corollas and Dodge Calibers. The Toyota Prius hybrid, which gets 46 miles per gallon (20 kilometers per liter) according to EPA estimates, is the fourth best-selling car. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 miles per gallon (14 kilometers per liter).
Many Republicans remained skeptical, raising objections to the additional costs amid questions about the management of the overwhelmed car rebate program.
"I've talked to too many dealers who say it's the most inept and poorly run program they've ever dealt with," said Sen. Jim DeMint, a Republican. "We need to get to the bottom of that before we spend $2 billion more."
The clunkers funding was running into a busy Senate calendar, only days before lawmakers were to depart for an August recess.
As the Senate works to extend the program, many dealers said they were concerned they could be on the hook for some of the money if the Senate fails to act.
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