LaHood Says Gov't Paid $1.2B For 'Clunkers'

WASHINGTON (AP) -- Transportation Secretary Ray LaHood says the government has approved $1.22 billion in reimbursements to car dealers for sales under the Cash for Clunkers program.

LaHood said Thursday the government is on track to pay eligible dealers by a Sept. 30 deadline. More than 40 percent of the applications from dealers have been paid.

The rebates led to more than 690,000 new car sales at a taxpayer cost of $2.88 billion. Auto dealers have said the Obama administration has been slow to pay them for the car incentives, which ended on Aug. 24.