The Cash for Clunkers program that was implemented to help the struggling auto industry by giving owners of old cars money towards the purchase of a new, more fuel-efficient vehicle, has now been suspended.
The House of Representatives may consider passing legislation to infuse more money into the program today, the last day of the session before the August recess begins.
Cash for Clunkers was supposed to continue through Nov. 1, 2009, or until the money ran out. Due to the enormous response the program received from customers, the $1 billion government infusion into the program has already run out.
Estimates show that the number of dealers participating should have completed only a dozen cash for clunkers deals. And some dealers have initiated more like 250 Cash for Clunkers deals -- 20 times what the government was expecting.
We are working tonight to assess the situation facing what is obviously an incredibly popular program, White House press secretary Robert Gibbs said of what officially is called the Car Allowance Rebate System.
Auto dealers and consumers should have confidence that all valid cars transactions that have taken place to date will be honored.