'Cash-for-Guzzlers' May be Debated in Mid-June

Washington DC May 26, 2009; The AIADA newsletter reported that according to Automotive News, a bill to offer cash vouchers of up to $4,500 to people who swap cars and trucks for new, more fuel-efficient vehicles may be considered on the House floor as early as mid-June.

The measure passed the House Energy and Commerce Committee Thursday as part of a climate-change bill that also provides for the development of plug-in electric drive vehicles, but Sutton also broke out the cash-for-guzzlers provision and introduced it as a stand-alone bill Thursday in the hope of getting it passed more quickly by Congress.

The legislation would offer customers $3,500 vouchers if they trade in cars that get less than 18 mpg for new vehicles that get at least 22 mpg. Vouchers of $4,500 would be awarded if the new cars get at least 10 mpg more than the old.

The new cars to be purchased could be assembled anywhere in the world. Senators also will consider a stand-alone cash-for-guzzlers bill, which was introduced Thursday by Sen. Debbie Stabenow (D-Mich.) and other members.

About 13 percent of new-car shoppers would be highly motivated to buy a new vehicle sooner due to the legislation, according to a recent survey.