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The Senate will vote to extend the popular
"cash-for-clunkers" program before going home on Friday, Majority
Leader Harry Reid predicted Tuesday, in a strong signal the
government won't let the trade-in rebates die under the surging
demand that has almost exhausted federal backing.


      Reid's GOP counterpart, Mitch McConnell of Kentucky, predicted
his party would not block a vote and "the matter will be
completed." 


Republicans were still demanding a chance to amend a
House-passed version that would extend the program into September,
but Democrats were confident the bill wouldn't be changed.

      "We'll pass cash for clunkers before we leave here," Reid said
after Democrats lunched at the White House with President Barack
Obama, who has pushed hard for the Senate to go along with the
House in adding $2 billion to the program's original $1 billion.

      Buyers of new cars and trucks have swamped formerly deserted
auto dealers to claim their rebates - up to $4,500 when they trade
in older models that get significantly worse gas mileage. The older
vehicles are then scrapped.

      The program has encouraged about a quarter-million Americans to
buy new cars at time when the economy is still in recession and
badly needs a boost.


      Because the House has already recessed for August, any change by
the Senate would effectively interrupt the rebate program until
Congress returns in September. Consumers who don't get in on a deal
this week would have to wait until then to take advantage of the
rebates, assuming eventual passage.

      "I think the last thing any politician wants to do is cut off
the opportunity for somebody who wants to get a rebate to buy a new
automobile," Transportation Secretary Ray LaHood, a former
Republican congressman from Illinois, said Tuesday.

      On Monday, the White House had warned that the program could
come to an abrupt halt Friday if the Senate didn't act favorably on
the bill passed by the House last week transferring $2 billion from
an economic stimulus account that had been set aside to subsidize
renewable energy. The new money would carry the program through
September, said White House Press Secretary Robert Gibbs.

      Through early Tuesday, the clunkers program had recorded 157,000
transactions worth $664 million. Eighty-three percent of the
vehicles traded in were trucks or SUVs, while 60 percent of the
vehicles purchased were passengers cars, for an average increase in
fuel efficiency of 61 percent, Gibbs said.

      Opposition to extending the program has been dissipating. One
vocal GOP critic, South Carolina Sen. Jim DeMint, said Tuesday he
would not try to block the legislation. 


And three lawmakers who
wanted the program limited to the purchase of even more
fuel-efficient vehicles said Monday they would back the plan.

      Yet Democrats as well as Republicans have raised concerns.
Senators in both parties have said it costs too much. Some
Democrats have argued that the program should require tougher
emissions standards for the new vehicles. 

Republicans have said it
puts the government in the bad position of picking winners and
losers.

      "People want to know what's going to be next. Cash for shoes?
Cash for groceries?" said Sen. Richard Shelby, R-Ala.


      The first $1 billion in funding is expected to lead to sales of
250,000 vehicles and the additional $2 billion would generate sales
of perhaps a half-million more vehicles.

      Car companies have credited the clunkers program with driving up
sales in late July. Ford said its sales rose 2.4 percent in July
from the same month last year, its first year-over-year increase
since November 2007, while Chrysler Group LLC posted a smaller
year-over-year sales drop compared with recent months, helped by
the special deals. Other automakers are doing better, too.

      Most consumers are buying smaller, more fuel efficient vehicles
under the program, according to a list of the top-10 selling cars
released by the National Highway Traffic Safety Administration.

      That includes Honda Civics, Toyota Corollas and Dodge Calibers.
The Toyota Prius hybrid, which gets 46 miles per gallon according
to EPA estimates, is the fourth-best-selling car.

 There is one SUV
on the list, the Ford Escape, which also comes in a hybrid model
that can get up to 32 miles per gallon.

Gallery

Administration: Car rebates will stop unless Senate acts

Cash for Clunkers out of cash

Auto dealers in Cash for Clunkers limbo

The Senate will vote to extend the popular
"cash-for-clunkers" program before going home on Friday, Majority Leader Harry Reid predicted Tuesday, signaling the government won't let the popular trade-in rebates die because of surging demand.

Top senators promise quick vote on 'cash for clunkers'

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