U.S House Approves "Cash For Clunkers" Legislation

Press Release

The U.S. House of Representatives today approved H.R. 2751, the Consumer Assistance to Recycle and Save (CARS) Act to stimulate the U.S. economy by a wide bipartisan majority of 298-119. The legislation, also known as the "Cash for Clunkers" bill, will allow consumers to trade in their older, less efficient cars or trucks and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient vehicles. The program will be authorized for one year and generate approximately one million additional new vehicle purchases over the next twelve months. See below for more information on H.R. 2751.

Congressman Gary Peters, whose Michigan congressional district is home to Chrysler World Headquarters, three GM plants and more auto suppliers than any district in the country, cosponsored the CARS Act.

"History shows that one of the quickest ways to end a recession is to sell more automobiles," said Rep. Peters. "New car sales constitute a major share of a nation's consumer spending, and increasing vehicle sales stimulates demand for the raw goods from which automobiles are manufactured. Production of glass, steel, plastics and other primary materials will be intensified as more new cars are sold, creating jobs throughout the country. This legislation is critical not only to spur growth in America's auto industry, but to stimulate the entire economy."

Along with improving the economy, the CARS Act will improve the environment by replacing less fuel efficient cars presently on the road with more efficient ones. More efficient vehicles also reduce demand for gasoline, which has a favorable impact on gas prices, and makes the United States more energy independent.

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