President Barack Obama
and Democratic lawmakers reached agreement on Tuesday on a legislative
proposal designed to stimulate U.S. auto sales, which have fallen to
near 30-year lows.
The one-year plan crafted by members of the U.S. House of
Representatives would offer vouchers worth up to $4,500 for owners to
replace their less fuel efficient vehicles for models that get better
The goal of the cash for clunkers legislation is to sell 1 million vehicles.
By stimulating consumer demand for new vehicles, this proposal will
directly benefit domestic autoworkers and automotive manufacturers,
which have arguably been hardest hit by the current economic downturn,
said Rep. John Dingell, a Michigan Democrat and staunch industry ally.
House Majority leader Steny Hoyer has embraced the proposal and said
in an interview with Reuters in April that the measure would be acted
upon quickly once proposed.