Senate funds for ‘clunkers’ sought

At least one GOP senator questioned the need to speed the money.

“This is crazy to try to rush this thing through again while they’re trying to rush through healthcare, and they want to get on to cap and trade electricity tax,’’ said Senator Jim DeMint of South Carolina. “We’ve got to slow this thing down.’’

Obama officials scrambled last week to add money to the Car Allowance Rebate System, which is designed to get old, polluting vehicles off the road and scrapped while helping car dealers emerge from the recession. The $1 billion has led to the sale of 250,000 new vehicles.

Owners of gas-guzzlers can receive rebates of $3,500 or $4,500 toward the purchase of a new fuel-efficient car. LaHood said 62 percent of the traded-in vehicles were trucks and “these people are buying cars that get much better gas mileage.’’

The program helped lift Ford Motor Co. to its first monthly sales increase in two years, the company’s top sales analyst said yesterday.

July sales results mark the first year-over-year gain for Ford since November 2007 and apparently the first uptick by any of the six biggest carmakers since last August, George Pipas said.

The Senate narrowly approved the initial money in June. But some lawmakers who voted for the plan, including Senators Dianne Feinstein of California and Susan Collins of Maine, have said the additional dollars should push consumers to buy more fuel-efficient vehicles and allow people to buy fuel-efficient used vehicles. Senator Jeff Bingaman, a New Mexico Democrat, has said he was concerned with the way the House paid for the extension, shifting $2 billion from a renewable energy loan program.

DeMint questioned the government’s role in providing incentives for auto sales.

“My children and grandchildren are going to have to pay for these cars, and we’re helping auto dealers while there are thousands of other small businesses that aren’t getting the help,’’ he said.

LaHood said dealers will be reimbursed for deals in the pipeline and that the government will make a “good-faith effort’’ for transactions beginning today.