Obama expected to sign auto stimulus package quickly

By Mark Huffman, ConsumerAffairs.com

The cash-for-clunkers bill passed the Senate 91-5 today and is on its way to President Obama for his signature. It will offer cash vouches worth as much as $4,500 to consumers who trade in their old cars for new, more fuel-efficient models.

The bill sailed through Congress after Democratic backers attached it to a bill that provides funding for troops in Iraq and Afghanistan. It’s intended to boost U.S. auto sales, reduce dependence on foreign oil and improve air quality, although critics say it’s unlikely to achieve any of those goals.

The Congressional Budget Office estimates that the bill will result in the sale of 150,000 new cars.

“This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries,” Sen. Carl Levin, D-Mich.

Supporters include not just domestic automakers. The Association of International Automobile Manufacturers (AIAM) was also a cheerleader for the measure.

“We expect the ‘cash for clunkers’ program to help stimulate the economy and drive an increase in industry sales. Such a program will also radiate economic benefits out to suppliers, dealers and small businesses all around the country,” said AIAM CEO Michael J. Stanton.

FOR COMPLETE STORY, PLEASE CLICK HERE.

~Sandy G.