WASHINGTON (AP) — Congress approved a “cash for clunkers” program Thursday to provide government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles.

This will help Auto dealers to bring more sales and push economy by adding car sales, by bringing buyers into showrooms. Thanks to our President Mr Obama for standing strong and giving it finally to customer rather then to non performers companies such as GM who made Gas guzzlers when country needed gas efficient cars.

“President Obama inherited an economic catastrophe, massive unemployment, a huge deficit, insolvent banks, and car companies that were being handed billions of dollars by Mr BUSH to perpetuate a plan that had them coming back every three months to ask for more.”

Program, which would be implemented by the Transportation Department, was expected to be implemented by early August.

The auto industry and its union lobbied heavily for passage of the cash for clunkers plan as GM and Chrysler have received billions of dollars in government-led bankruptcies and the entire auto industry has dealt with plummeting car sales. In May, overall sales were 34 percent lower than a year ago.

Under the proposal, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg. The value of the voucher would grow to $4,500 if the mileage of the new car was 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the car window’s sticker.

Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV got at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV was at least 5 mpg higher than the older vehicle.

Dealers participating in the program would receive an electronic voucher from the government for the trade-in to apply to the purchase or lease of a qualifying vehicle. Dealers need to ensure that the older year 1984 or later vehicles are crushed or shredded to get the Gas Guzzlers off the road.

The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared with more than 13 million in 2008 and more than 16 million in 2007.