The US House of Representatives has voted in favour of offering incentives for consumers who trade in gas-guzzling vehicles for new models, it emerged on Tuesday (9th June).

Following the passing of a bill with a majority of 298 to 199 - with two abstentions - some car owners will now be able to pocket $4,500 if they change to a more fuel-efficient vehicle.

The government is hoping that the move will stimulate the country's flagging auto sales, with the Congressional Budget Office estimating that 650,000 new vehicles will be snapped up.

"[This act] will shore up millions of jobs and stimulate local economies," said Republican politician Betty Sutton.

"It will improve our environment and reduce our dependence on foreign oil."

Under the terms of the plan, owners of cars and trucks which are incapable of producing less than 18 miles per gallon will be offered vouchers worth between $3,500 and $4,500.

Although there are still some aspects to iron out - such as whether the scheme should focus on higher-mileage models - the bill has set aside $4 billion to reward consumers.

It is now likely to go through the Senate in the next major bill to be brought to the chamber.

Source:

House OKs cash for clunkers (09/06/09)

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