'Cash for Clunkers' Program Could Give U.S. Drivers $4,500 to Ditch Gas Guzzlers

Published January 20, 2009

The United States may soon follow in China's footsteps with a "Cash for Clunkers" program that will give drivers $4,500 vouchers to get rid of their gas guzzling vehicles. China's program will pay drivers of high-polluting vehicles $3,600 to stay off the road.

But while the Chinese program will shell out cash with no questions asked, the proposed U.S. program will require drivers to use their vouchers to buy vehicles "with a fuel economy rating that exceeds federal targets for that class of vehicle by at least 25 percent. The vehicle must have a manufacturer suggested retail price of less than $45,000 and be a 2004 model or later."

According to federal officials, the Cash for Clunkers program could take 1 million polluting vehicles off the road and save 40,000 to 80,000 barrels of fuel daily.

If the program goes into effect, it will be just one more reason for automakers to ditch SUVs and focus on hybrids and small cars -- especially if hordes of Americans will be lining up for fuel-efficient cars with $4,500 vouchers in hand.

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'Cash for Clunkers' Program Could Give U.S. Drivers $4,500 to Ditch Gas Guzzlers

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