The US Senate has approved the country’s proposed scrappage scheme and it now just needs President Obama’s signature before officially going ahead.
The $1billion (£610million) initiative was passed by 92 votes to five in the Senate yesterday.
Under the proposals, customers trading in their old cars for newer, more efficient models would get between $3500 (£2100) and $4500 (£2700) in cash vouchers.
The scheme is expected to last for three and a half months.
Senator Carl Levin said: “This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries.
“It will encourage consumers to purchase more fuel-efficient vehicles.”
President Obama has often spoken of the country’s need for a scrappage scheme after the success of similar initiatives in Europe.
Before going before the Senate, the bill had been passed in the House by a 226-202 vote.