Cash back to scrap a guzzler

US lawmakers launch green incentive to revive nation's struggling automakers

Democratic lawmakers in the United States have proposed a cash-for-guzzlers bill that would provide vouchers of up to US$4500 ($7600) to people who trade in cars and trucks for new, more fuel-efficient vehicles.

The programme, if approved by Congress and signed by President Barack Obama, would lead to about one million new vehicle purchases, said Michigan Democrat representative John Dingell.

Customers would get a US$3500 voucher if they trade in a car that gets less than 18mpg (15.6 litres/100km) for a new car with mileage of at least 22mpg. Vouchers of US$4500 would be awarded if the new car gets at least 10mpg more than the old. said.

The mpg standard is the Environmental Protection Agency's combined city-highway average as listed on a vehicle's sticker.

For same-class trade-ins for trucks and vans, the trade-in vehicle must have been manufactured in 2001 or before. But age restrictions will not apply to other vouchers for cars, says Dingell. And in what appears to be a major compromise among the various automotive constituencies, the current measure offers no special incentives to buy American-made or American-owned brand vehicles.

The US automotive industry hopes such a programme can mirror its success in several countries, particularly Germany. So far this year US vehicle sales have plunged 37.4 per cent. But Germany, which passed a similar measure in February, posted gains of 19 per cent in April and 40 per cent in March.

General Motors said it supported the measure.

"Scrappage programmes implemented in other countries around the world have proven to be very successful in re-invigorating car and truck sales," a GM statement said.

"The approach of providing vouchers for new vehicle purchases, which is tied to getting older, less efficient vehicles off the road at the same time, is a huge win for consumers, the economy and the environment."

United Auto Workers union president Ron Gettelfinger also endorsed the measure.

"Congress should act right away on this high-priority measure, to deliver an immediate stimulus to our auto industry and to keep Americans working," said Gettelfinger.

Proponent Dingell said: "This programme will spur consumer demand for new vehicles, thereby injecting much-needed cash into our ailing domestic automakers."

It also would result "in meaningful reductions in energy use by American drivers", he said.

Vouchers would also be offered for swaps of small trucks and SUVs, large light-duty trucks and work trucks. The programme would be authorised for up to a year.

- AP