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UPDATE 1-U.S. House OKs legislation to spur auto sales

Tue Jun 9, 2009 6:01pm EDT

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* Up to $4,500 voucher for car/truck purchases

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* Plan would help U.S. manufacturers sell SUVs, pickups

* Senate wrangling clouds immediate prospects (Adds house passage, carmakers' support)

By John Crawley

WASHINGTON, June 9 (Reuters) - The U.S. House of Representatives approved legislation on Tuesday intended to spur auto sales by providing consumers with up to $4 billion in cash vouchers to buy more fuel-efficient cars and trucks.

The bill, known as "cash for clunkers", would extend up to $4,500 for gas guzzler trade-ins.

Supporters tout the potential economic and environmental benefits of vehicles that require less fuel and burn what they use more cleanly.

"History shows that one of the quickest ways to end a recession is to sell more automobiles," said Representative Gary Peters of Michigan, whose district includes Chrysler LLC's headquarters, several General Motors Corp GMGMQ.PK, facilities and numerous suppliers.

Automakers also threw their support behind the plan, whichcovers vehicles sold by all manufacturers but may give a bigger boost overall to U.S. carmakers, two of which -- Chrysler and GM -- are bankrupt.

"This timely, targeted and temporary program will put money directly in the hands of consumers and work to reduce fuel consumption and greenhouse gas emissions," said Pete Lawson, vice president of government affairs at Ford Motor Co (F.N), which is considered the best-positioned of the U.S. automakers to take advantage of such a program.

The House vote approving the proposal by Representative Betty Sutton of Ohio was 298-119.

President Barack Obama has urged Congress to quickly finalize a new vehicle incentive plan, which still must be considered by the U.S. Senate.

Members of that chamber are weighing two versions. Prospects for quick passage are uncertain, but proponents expect lawmakers to act within coming weeks.

(Reporting by John Crawley, editing by Leslie Gevirtz and Ted Kerr)



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