John At The Center

The U.S. government’s $1 billion “cash for clunkers” program to spur new car sales “has been suspended” because it’s running out of money six days after it began, Senator Debbie Stabenow said.

“It is amazing that ‘cash for clunkers’ would be this successful this quickly,” said Stabenow, a Michigan Democrat, in a statement today. “I urge Congress and the administration to provide additional funding.”

Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the program to generate about 250,000 vehicle sales and to have enough money to last until about Nov. 1.

via U.S. ‘Clunkers’ Auto Program Suspended, Senator Says (Update1) – Bloomberg.com.