UPDATE 2-Senate seeks "clunker" remedy,W.House warns of shutdown

* Gov't confirms 85,000 sales through Saturday

* Ford Focus top selling under "clunker" program

* Senate would take up measure Tuesday at earliest (Updates with White House, industry data, Senate comment)

By John Crawley

WASHINGTON, Aug 3 (Reuters) - U.S. Senate Democrats sought a path forward on Monday to replenish the "cash for clunkers" auto sales incentive while the White House warned the program would cease at week's end without more money.

Republican doubts, potential procedural hurdles, and limited time for action muddled the outlook for supporters of a proposed $2 billion extension.

"They want to get something done this week," said a Democratic party source who was not authorized to speak for attribution about the matter. "The devil is in the details."

The first opportunity for the Senate to consider a remedy will be Tuesday after Democratic leaders huddle with President Barack Obama at the White House to discuss "clunker" prospects, health care legislation and other priorities.

"We're very hopeful," said presidential spokesman Robert Gibbs. "I think if it doesn't happen this week, it's unlikely that we'll make it to the weekend with a program that can continue."

The statement, updated from Sunday when a senior official gave the program a midweek expiration date, gave dealers another few days to make deals with consumers and lawmakers more breathing room to strike a deal of their own.

Senators are scheduled to leave town on Friday for a month-long vacation. The House of Representatives left town last Friday after approving the "clunker" extension.

Republicans amplified their doubts about extending more money to auto-related interests and concerns Congress was being hasty.

"We were told this program would last for several months. As it turned out, it ran out of money in a week, prompting the House of Representatives to rush a $2 billion extension before anybody even had time to figure out what happened with the first billion," Republican Senate Leader Mitch McConnell said.

The incentive that gives buyers a rebate of up to $4,500 to trade in their old cars and trucks for more fuel efficient ones prompted 80,500 confirmed sales through Saturday, the most updated sales data showed on Monday.

Government and industry estimate that nearly 250,000 vehicles have been sold with "clunker" incentives over the past month, nearly exhausting its $1 billion balance and surprising government officials.

The administration began tallying sales a week ago, but a paper-work logjam has slowed efforts to produce an updated accounting. Transportation Department officials met with vendors over the weekend to expedite the administrative work.

The early "clunkers" data showed General Motors Corp GM.UL, Chrysler Group, and Ford Motor Co (F.N) running about even with recent marketshare totals by claiming nearly half the sales. The best-selling vehicle was the Ford Focus.

Ford, the only Detroit manufacturer not to operate with the help of a federal bailout and the only one of the three not to seek bankruptcy, reported on Monday that "clunker" incentives contributed to its first year-over-year monthly sales increase since November 2007. And its shares rose.

GM, which exited bankruptcy in July, reported an overall sales decline but noted that retail sales rose for a fifth consecutive month, supported by "clunker" incentives.

GM reported a 54 percent increase in small-car sales and 78 percent of Toyota Motor Corp (7203.T) "clunker" sales included the popular Prius gas-electric hybrid, Camry sedan and Tacoma pickup. Most of the Volkswagens (VOWG.DE) sold were clean diesel Jetta TDIs, figures released by manufacturers showed.

The program was established in part to help GM and Chrysler get on their feet after emerging from bankruptcy.

The administration has promoted success of the "clunker" incentive as a modest boost to an economy mired in recessiomn. Former Federal Reserve Chairman Alan Greenspan told ABC's "This Week" program on Sunday the "extraordinary response" was a sign that confidence in the economy was starting to pick up. (Additional reporting by David Bailey in Detroit, Tom Ferraro, Rick Cowan and Jeff Mason in Washington) (Reporting by John Crawley; editing by Carol Bishopric)