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Ear to the Ground

‘Cash for Clunkers’ Gives Auto Industry a Lift

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Posted on Sep 1, 2009
auto industry
fordnewsblog.wordpress.com

Those dangerous socialists in our federal government have really done it this time. Why, they’ve ... engineered a way to give the American auto industry a much-needed boost with their successful “Cash for Clunkers” program.  —KA

CNN Money.com:

The auto industry temporarily awoke from its slumber last month thanks to the U.S. “Cash for Clunkers” offer, led by a 17% sales jump at Ford Motor Co. (F) that further highlighted the performance difference between it and Detroit rivals General Motors Co. and Chrysler Group LLC.

Ford’s gain was also helped by its trucks posting the first year-over-year sales increase in nearly three years. Meanwhile, Chrysler’s 15% decline was in part due to a lack of inventory - most of the company’s plants sat idle for almost three months as the auto maker dealt with its bankruptcy process.

Chrysler finished the month with 100,238 units in inventory, down 74% from a year ago, and representing just a 28-day supply. That’s why the company recently announced a 50,000-vehicle boost to planned output.

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By Brain, September 8 at 7:36 pm #
(Unregistered commenter)

Toyota nice car, not modification needed !

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By Brain, September 8 at 7:33 pm #
(Unregistered commenter)

Whoever wrote this article is on crack. Sure, the auto industry gets a boost—for now…

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By Cash for Idiots, September 2 at 10:52 am #
(Unregistered commenter)

First the feds give them a fat tax break to buy their wholly unnecessary SUV, then they give these dipsh*ts money to ditch it and get a new car with higher gas mileage.

Your tax dollars at work.

Ride a bike.

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By ChaoticGood, September 2 at 4:15 am #

The program was a waste of money in the long term.  My local Toyota dealer has almost no cars on his lot now, so he is happy.
At least Americans bought higher milage cars for the most part.  That will save some oil money.  It made some good news stories and some good political fodder for self-congratulatory politicians.
The owners of the car dealerships should be happy as soon as they get their checks from the government.

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By voice of truth, September 1 at 10:38 pm #

This is ridiculous, TD is so desperate to prop up Obama that they don’t even comprehend what they are printing.

The cash for clunkers is a joke on a number of levels.  Did it lead to a spike in auto sales?  Yes.  Will it be a long-term upswing?  No.  It is already clear that is was only a short term burst of spending.  In fact, most auto dealers are bemoaning the fact that they will be WAY down in sales for the balance of the year since demand is has evaporated already.

All this thing proved was that if you pay Americans enough, they’ll accelerate their buying plans.  But it is not like food that people have to keep on buying and buying.

A majority of cars sold were not even from US automakers.  Additionally, of the US automakers, only Ford did really well, and they are the one NOT owned by the US Government.  Hmmm, maybe a union leader and a congressman really don’t know how to run an automobile manufacturing company!

This is a joke.

Between this idiot article and Marie Coco telling us we have to stay at war in Afghanistan, we have finally passed over the threshold of liberal panic as they try to save the presidency of that fool in DC.

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By Rodger Lemonde, September 1 at 10:21 pm #

Too bad the dealers get a straw to grasp in the
process.
mike112769 may know more about crack than business.
If he was starving and someone gave him a bag of
groceries would he bitch them out for not cooing the
groceries for him?

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By coloradokarl, September 1 at 10:17 pm #

We pay to give deals to people who probably can afford the new cars anyway and at the same time take 275,000 affordable used cars off the market. The Japanese announce they are coming out of this recession the same week we add $2 Billion to the program that is 51% Foreign car purchases. Our Children in effect are bailing out Japan?!?

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By mike112769, September 1 at 8:29 pm #

Whoever wrote this article is on crack. Sure, the auto industry gets a boost—for now. As soon as the cars in the cash for clunkers deal are made, what then? The car plants have been calling back workers and working them overtime. That will only work until this round of cars are gone, then we’re right back where we were. In about 3 or 4 months they’ll have to start letting all those workers go back on unemployment. Funny how the number one new car everyone was getting for their clunkers was a Corolla.

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By beigeman, September 1 at 5:53 pm #
(Unregistered commenter)

yeah…

Toyota appreciates the donation.

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By Brian, September 1 at 4:34 pm #
(Unregistered commenter)

I am about as left as they come, a died-in-the-wool Obama supporter, but I think C4C was a stupid initiative.  Already, car dealers are reporting that sales have gone right back to their pre-program doldrums (this shouldn’t be a surprise).  It rewarded folks who bought inefficient vehicles, and perpetuation the notion that we can consume our way to greenness.  Why not funnel those funds towards creating walkable communities, tax credits for bike-commuters, re-invigorating our rail network, etc etc.

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