According to reports, the US government's recently-launched "cash for clunkers" program - officially called 'Car Allowance Rebate System' (CARS) - is already pulling customers to the showrooms; thereby giving the much-required boost to the country's struggling auto industry.

The program is essentially designed to see the gas-guzzling, air-polluting vehicles off the road; and, as such lead to an increase in new auto sales in the process! The federal program cuts off between $3,500 and $4,500 from the marked price of a new vehicle, in exchange for an old "clunker" - depending on the type of the new vehicle purchased and the difference in fuel economy between the new and the trade-in vehicles.

In addition, the CARS program also bars the dealers from reselling the "clunkers," which will be declared inoperable and sold for scrap.

The program requires the 17,000 participating auto dealerships, as well as the customers exchanging their "clunkers," to complete certain paperwork, which, after the federal government review, facilitates the mentioned voucher amount reimbursement to the dealership.

For the Phase 1 of the Monday-launched program, the government has earmarked $1billion; and, according to www. cars. gov Web site, the amount had already come down to $858 million by Wednesday afternoon! In the opinion of a majority of analysts and industry observers, the federal fund for the program would possibly be depleted well before the program's end date - November 1!