ADMINISTRATION: 'CLUNKERS' IMPROVING GAS MILEAGE

ADMINISTRATION: 'CLUNKERS' IMPROVING GAS MILEAGE

WASHINGTON -The Obama administration appealed to the Senate Monday to bail out the popular but reeling 'cash for clunkers' rebate program, arguing that it already has improved vehicle efficiency by 70 percent

Putting pressure on lawmakers to act before going on vacation later this week, the administration talked up the initial results of the $1-billion car purchase program. One official said the average fuel economy of new vehicles purchased through the program was 25.4 miles per gallon and the average fuel efficiency of trade-ins was 15.8 mpg, representing a 9.6 mpg fuel economy increase.

The data was aimed at appeasing lawmakers such as Sens. Diane Feinstein, D-Calif., and Susan Collins, R-Maine, who have questioned whether the program's environmental benefits go far enough.

The data based on 80,500 vehicle transactions logged into the government's operating system through Saturday afternoon, said the official, who spoke on condition of anonymity because he wasn't authorized to speak publicly. The official said the fuel efficiency improvements would save a typical customer between $700 and $1,00 a year in fuel costs.

The administration pressed hard for an additional $2 billion after serving notice over the weekend that the program could expire as early as this week unless the Senate acts, as the House did in voting overwhelming for the money last Friday.

Transportation Secretary Ray LaHood has declined to provide a firm deadline, and the administration has seemed coy about just how long dealers would be reimbursed after saying Sunday that it would have to be suspended if the Senate fails to act.

The administration official said that 83 percent of the trade-in vehicles are light trucks, which includes pickups, SUVs and vans, and 60 percent of the new purchases are passenger cars. General Motor Co., Ford Motor Co., and Chrysler Group LLC accounted for 47 percent of the new vehicles purchased, the official said. The Ford Focus was the top-selling vehicle in the program.

Fierce lobbying for the program came from other quarters: The National Automobile Dealers Association and the American International Automobile Dealers contacted thousands of dealerships, telling them to bombard the Senate with phone calls and e-mails.

“This is the one true stimulus that seems to be working out of all things that have been tried in the last few months,” said Cody Lusk, president of the international group.

LaHood has said earlier that if the $2 billion isn't approved, “we would have to suspend the program.” At the same time, LaHood told C-SPAN's “Newsmakers” show Sunday that the administration would “continue the program until we see what the Senate does and I believe the Senate will pass this.”
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