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After a long spring of negative publicity about layoffs, closures and bankruptcies, the automobile dealerships of America received a jolt of free, and positive, promotion to end the week. The Story of the Day and the lead item on both ABC and NBC was the success of their Cash for Clunkers program, the federal subsidy for new car purchasers who trade in gas guzzlers in order to upgrade fuel efficiency. After a blockbuster first week of trading, the House of Representatives voted to triple its funding to $3bn. Both networks had summer substitute anchors: David Gregory at NBC and Elizabeth Vargas at ABC. CBS led with the latest economic statistics for the second quarter's Gross Domestic Product.

"Car dealerships around the country are gearing up for what they expect will be a very busy weekend," announced NBC's Chris Jansing, in what amounted to free advertising. "With a nickname so catchy it is not hard to see why Cash for Clunkers captured so much attention," chimed in CBS' Jeff Glor. "There is no question it has driven up foot traffic and sales inside dealerships." ABC's David Muir explained that the program requires that the old gas guzzlers be removed from the highways permanently. "The bulk of the cars will be crushed and disposed of at junkyards." An additive dubbed the Clunker Bomb is poured into engines to immobilize them.

NBC's Kelly O'Donnell covered the vote from Capitol Hill. Congress had "an unusual problem," she quipped. "They actually had a government spending program that was popular." To extend the car subsidy, the House diverted already-approved funds from research into renewable energy. Getting Senate approval next week, she warned "will be a harder sell." The reason for the extension is that dealerships run the risk of failing to be reimbursed after cutting deals that include the rebate, CBS' Glor explained. The federal Website where applications are supposed to be registered keeps crashing under unexpected volume.

Andrew Tyndall 8/3/09 11:48:26 pm

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