July 30 (Bloomberg) -- The U.S. government’s $1 billion “cash for clunkers” program to spur new car sales “has been suspended” because it’s running out of money six days after it began, Senator Debbie Stabenow said.

“It is amazing that ‘cash for clunkers’ would be this successful this quickly,” said Stabenow, a Michigan Democrat, in a statement today. “I urge Congress and the administration to provide additional funding.”

Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the program to generate about 250,000 vehicle sales and to have enough money to last until about Nov. 1.

“Any doubt that the CARS program would jump-start auto sales is completely erased,” said Greg Martin, a General Motors Co. spokesman. “More than 200,000 cleaner, more fuel-efficient cars are on the road and a vital industry gets a needed boost. We hope there’s a will and way to keep the CARS program going a little bit longer.”

Julie Alfonso, a spokeswoman for Toyota Motor Corp., had no immediate comment. Mike Moran, a spokesman for Ford Motor Co., said in an e-mail that he had no immediate comment.

Representatives Sander Levin of Michigan and Betty Sutton of Ohio, both Democrats, said this week that they may try to extend the program if the initial allotment was exhausted swiftly.

23,005 Dealers

Earlier today, the National Highway Traffic Safety Administration, which is running the program, said 22,782 vehicles worth $95.9 million had been sold. At least 23,005 dealers applied to participate in the program, the agency said then in a statement.

Jill Zuckman, a Transportation Department spokeswoman, and Nick Shapiro, a White House spokesman, declined to comment. Tom Gavin, a spokesman for the Office of Management and Budget, the White House branch that oversees government spending, didn’t immediately respond to a phone call seeking comment.

“We do not have confirmation yet” of the program being suspended, said Charles Cyrill, a spokesman for the National Automobile Dealers Association. “If the program is indeed suspended, NADA will continue to work with the Department of Transportation to emphasize the importance that every dealer is reimbursed for a valid deal.”

Cyrill said that “we will also work with the Obama administration and members of Congress to meet the demonstrated consumer interest.”

President Barack Obama signed the clunkers program into law June 24 after Congress approved it the previous week as part of legislation to finance the Iraq and Afghanistan wars. Among the goals was to get older, less fuel-efficient vehicles off U.S. roads.

To contact the reporters on this story: Angela Greiling Keane in Washington at agreilingkea@bloomberg.net; John Hughes in Washington at jhughes5@bloomberg.net

Last Updated: July 30, 2009 21:29 EDT