'Cash for clunkers' kicks in gear

Program originally pitched to help the environment is getting new life as the White House and automakers see its potential to boost sales.

WASHINGTON (CNNMoney.com) — A congressional effort to subsidize new cars sales for consumers who scrap old ones is gaining momentum, as leaders seek to help the struggling auto industry.

So-called cash-for-clunkers legislation introduced in January aimed to encourage the purchase of more fuel efficient cars. Consumers with old, gas guzzlers could get $1,500 to $5,000 vouchers funded by the government to use toward the purchase of new cars.

The goal: reduce greenhouse gas emissions and fuel car sales. How far the legislation should go to accomplish those often competing goals has become a bone of contention on Capitol Hill.

The bills didn’t move very far until President Obama weighed in with his support a few weeks ago. Now negotiators are working this week on the details of a cash for clunkers program that would be added to an over-arching clean energy bill.

CNN