‘Cash for Clunkers’ Gives Auto Industry a Lift
Posted on Sep 1, 2009
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
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.