The U.S. government plans to temporarily suspend its "cash for clunkers" incentive program because Obama administration officials believe its $1 billion budget has been exhausted after just one week, said several congressional officials.By my very primitive calculation, using the highest rate of $4,500 per car, over 220,000 new cars were sold in the past six days. That has to be some kind of record. Read More......
Department of Transportation officials contacted lawmakers offices Thursday evening to inform them the program would be put on hold as early as Friday, these people said.
The program, which offers rebates of up to $4,500 to consumers who trade in old vehicles and buy new, more fuel-efficient models, was launched July 24 and sparked a surge in car sales.
"It was an absolute success," said Michael J. Jackson, chief executive of AutoNation Inc., the U.S.'s largest chain of auto dealerships. "There's a very compelling case the government should put more money into it. It's a great stimulus to the economy.
Congress had expected the $1 billion set aside for the rebates to last several months and set up the program to expire Nov. 1.
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