By Josh Mitchell Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- President-elect Barack Obama and congressional leaders are considering a plan to provide incentives to consumers who trade in older vehicles for modern, fuel-efficient cars, a top auto-industry lobbyist said Tuesday.
The plan is being considered for inclusion in the economic stimulus package, with details still being worked out. An early proposal involves the government providing instant rebates of up to $5,000 to consumers who trade in vehicles at least 10 years old for cars and trucks that meet certain fuel-efficiency standards.
"This has been on a number of people's short list" because it is a proposal designed to stimulate the economy while also benefitting the environment, said Dave McCurdy, president and chief executive of the Alliance of Automobile Manufacturers, which represents U.S. and foreign auto makers and is pushing the proposal.
He told Dow Jones Newswires that officials from Obama's transition team and members of Congress have told him the proposal is being considered.
Spokespeople for Obama and the top Democrats in Congress - House of Representatives Speaker Nancy Pelosi of California and Senate Majority Leader Harry Reid of Nevada - could not immediately be reached for comment.
McCurdy said that under the plan being considered, the size of the government "rebates" would vary depending on fuel efficiency of the car being purchased.
"The better the fuel economy of the replacement vehicle, the more incentives the consumer would receive toward the purchase," McCurdy told Dow Jones.
The incentives would be provided to consumers upon the sale, McCurdy said. "Unlike a tax credit that you have to file for or wait for next year's tax return, this is something that would apply at the dealer, so it's almost like a rebate," he said.
The plan has a better chance of being passed than other aid proposals for the auto industry because it appeals not just to car makers but to environmentalists, some of whom have already expressed support for it, McCurdy said.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
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Publié le 13 janvier 2009 Copyright © 2009 Dowjones