WASHINGTON AND LOS ANGELES — The road to recovery for U.S. automakers could be jammed with hundreds of thousands of gas-guzzling used cars, which President Obama hopes will be traded in for more fuel-efficient vehicles -- with the lure of government money.
So-called cash-for-clunkers programs in Germany and France have worked well this year to spur new car sales. But similar initiatives aimed at reducing smog in Southern California have not fared so well in recent years. And roadblocks to a national plan abound, including its potentially huge cost.
The idea of stimulating new car sales by coaxing old cars into the salvage yard is gaining bipartisan momentum in Washington amid federal efforts to reshape an industry that on Wednesday released dismal sales figures for March.
"The simple reality is we have got to get American consumers to buy automobiles," said Rep. Candice Miller (R-Mich.)
She is among 19 lawmakers co-sponsoring a bill by Rep. Betty Sutton (D-Ohio) that would offer $3,000 to $5,000 to motorists who scrap an old car and buy a new one. Sen. Dianne Feinstein (D-Calif.) is leading a bipartisan group pushing its version of the legislation in the Senate.
Either plan would cost $1 billion to $2 billion a year, or more, depending on who would be eligible and how many people participated.
Supporters said the legislation would help save the automakers and the environment, with both bills promoting sales and forcing higher polluting vehicles off the road.
U.S. carmakers strongly support the idea, with a GM executive Wednesday saying it could increase new car sales by 1 million to 3 million vehicles annually. That would be a huge boost for an industry now on pace to sell fewer than 10 million vehicles domestically this year. Obama on Monday touted what he called fleet modernization as a way to help the auto industry recover.
But some major barriers must be overcome.
Obama said the money would have to be carved from existing programs in the $787-billion economic stimulus package passed in February, a potentially difficult task. Supporters said there may be as much as $3 billion in unallocated stimulus cash. Alternatively, the program could be funded with about $1.8 billion in stimulus money that has been rejected by governors in some states.
