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It looks like packed US car dealerships will continue. Late Wednesday the Senate majority leader Harry Reid announced that the US Senate now has enough votes to pass the House version of a bill to extend the popular automobile stimulus program.

Car manufacturers, their dealerships, and factory workers across the country are cheering. The firms have stated that the clunkers program is significantly driving up sales with most consumers buying smaller, “greener” vehicles.

General Motors Co (which just emerged from bankruptcy earlier in July) reported the best news among all the car makers accounting for nearly 1 out of 5 vehicles sold under the program. The program’s extension is now likely to lead all automakers to increase production and bring back laid-off workers. Several have already announcing plans to increase production cycles and others likely will follow suite once “part 2″ of the program funding is in place.

Late Wednesday night, Ford’s chief financial officer, Lewis Booth, said his firm would decide on production increases shortly and make an announcement in several weeks.

The Clunkermania developments provide more evidence of the increasing potential for a strong bounce in Q3 GDP growth.

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