US suspending cash for clunkers deal

The Obama administration will suspend a US$1 billion program intended to spur US auto sales after it surprisingly approached its funding limit after only a few days, government and industry sources said.

The so-called "Cash for Clunkers" program authorized up to $4,500 to car buyers who traded in their gas guzzlers for more fuel efficient vehicles.

The program was expected to run through September 30 but the sources said the administration would suspend it within the next day.

Transportation Department officials had no immediate comment on the program that the agency administers.

- Reuters