Dems say 'clunkers' extension will pass

WASHINGTON, Aug. 4 (UPI) -- U.S. Senate Democrats predicted the $2 billion extension of the "Cash for Clunkers" program would pass, despite a Republican threat to block it.

The Senate is expected to vote by Friday on extending the program, formally known as the Car Allowance Rebate System, which offers rebates of up to $4,500 for vehicle trade-ins used to purchase new cars with improved fuel efficiency.

Before it adjourned, the House approved a $2 billion extension after the program ran through its $1 billion budget in the first week.

At the White House for a lunch meeting with President Barack Obama, Senate Majority Leader Harry Reid predicted Tuesday the measure would pass. Sen. Jim DeMint, R-S.C., meanwhile, said he would not block a vote on the bill, The New York Times reported Tuesday.

Secretary of Transportation Ray LaHood endorsed the bill, as did Sen. Charles Schumer, D-N.Y. "It's working as a stimulus," Schumer said. "It's working to help families. It's working to improve mileage."

But some Republicans were grumbling. Senate Republican leader Mitch McConnell of Kentucky said the budget-breaking flood of applications showed the program had been poorly managed.

Automakers reported mixed results. Ford Motor Co. said sales increased 2.3 percent in July from a year ago, the first increase in two years. Chrysler Group and General Motors Co. reported sales slipped in July.