Protectionism Could Sink New Cash-for-Clunkers Bill

A newly crafted cash-for-clunkers bill gaining momentum in Congress would provide consumers a $5,000 voucher towards the purchase of a more fuel-efficient vehicle, but the legislation could trip over the fact it excludes a host of cars and trucks from foreign auto makers.

Similar programs are working elsewhere in the world. In Germany, a scrappage program boosted sales in the country 21.5% in February. Buyers trading in cars older than nine years receive a €2,500 ($3,219) bonus ...