The "cash for clunkers" program faces two hurdles. The first is that it has nearly run out of money -- after only a week in the market. It has apparently helped push up July domestic car sales, however, and Ford (F) says it will have its first year-over-year sales improvement in nearly two years when it announced figures for last month.
The second, and more severe problem, is that while the House has approved another $2 billion for the program, the Senate may reject it. U.S. car sales could drop sharply in August without the stimulus program. The recovery in the auto market could be arrested just as it begins.