House Dems reach 'cash-for-clunkers' deal

Gordon Trowbridge / Detroit News Washington Bureau

Washington -- House Democrats have reached an agreement on a "cash-for-clunkers" bill that could perk up anemic auto sales.

The agreement ends lengthy negotiations between auto-state lawmakers, who sought a bill that would give a maximum boost to sales, and other Democrats who wanted the bill to maximize improvements in the fuel efficiency of autos on the road.

Democrats on the House Energy and Commerce Committee discussed the legislation with President Barack Obama during a morning meeting at the White House, press secretary Robert Gibbs said. Gibbs said Obama, who has called for passage of a "cash-for-clunkers" bill, congratulated the lawmakers on crafting legislation that could help the environment and the ailing auto industry.


The idea is to offer consumers cash incentives to turn in older vehicles for new models. Rep. John Dingell said in a written statement that the deal would limit the incentives to buyers trading in cars that got 18 mpg or less, with an escalating cash reward depending on mileage of the new vehicle.

There would be similar but lower mileage requirements for drivers of pickups and SUVs and large light-duty trucks. Heavy-duty work trucks would be eligible for trade-in incentives if they were built in 2001 or earlier.

gtrowbridge@detnews.com