‘Cash for Clunkers’ Yielded Almost 700,000 Sales - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 2 (permalink) Old 08-26-2009, 12:02 PM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,754
Garage
Thumbs up ‘Cash for Clunkers’ Yielded Almost 700,000 Sales

‘Cash for Clunkers’ Yielded Almost 700,000 Sales


Aug. 26 -- The U.S. government’s “cash for clunkers” vehicle trade-in program produced almost 700,000 automobile sales, the Transportation Department said.

Rebate applications valued at $2.88 billion were submitted by the deadline, the department said today in a statement. The program, which offered buyers discounts of as much as $4,500 to trade in older cars and trucks for new, more fuel-efficient vehicles, ended Aug. 24. The government granted dealers an extra day to file repayment applications.

The initiative helped restore demand for the slumping auto industry, prompting General Motors Co., Ford Motor Co. and Chrysler Group LLC to boost production plans in the second half of the year. While sales are likely to fall to a “more sustainable level,” any offsetting effect on U.S. growth in future years is expected to be “gradual,” the White House Council of Economic Advisers said this week.

The effort “was incredibly well received judging just by the number of consumers that participated,” said George Pipas, Ford’s sales analyst. “You’ve got an economic stimulus program and an environmental program, and seldom do those two programs sleep in the same bed.”

The U.S. had estimated the program’s initial $1 billion would spur 250,000 clunkers sales. That amount was exhausted the less than a week after the initiative began. Congress added an additional $2 billion intended to keep it going through Labor Day, which is Sept. 7.

Fuel Economy

The Focus, made by Dearborn, Michigan-based Ford, was the only vehicle from a U.S.-based company among the top five purchased under the program. The others are Toyota Motor Corp.’s Corolla and Camry, Tokyo-based Honda Motor Co.’s Civic and the Elantra, made by Hyundai Motor Co. of Seoul. Overseas-based automakers manufacture some cars in the U.S.

The average fuel economy of the vehicles traded in was 15.8 miles per gallon and the average fuel economy of vehicles purchased is 24.9 mpg -- a 58 percent improvement, the Transportation Department said.

The program will save 9 million to 10 million barrels of crude oil over the next five years, with consumers saving $700 to $1,000 annually at the gasoline pump, Ford’s Pipas said.

Dealers complained of slow reimbursements from the program and government-computer glitches that hindered applications for repayments.

Senate Commerce Committee Republicans, led by Kay Bailey Hutchison of Texas, sent a letter to Transportation Secretary Ray LaHood expressing concern over dealer-reimbursement delays and urging greater transparency in the clunkers program.

Growth Forecast

The government said there was “overwhelming demand” on the clunkers computer system.

Economic benefits of the program will persist in coming months as carmakers replenishing inventories hire and expand production, the White House Council of Economic Advisers said.

The initiative will boost U.S. third-quarter gross domestic product by 0.3 to 0.4 percentage point and create 42,000 jobs by the end of 2009, according to the CEA’s estimate.

There are signs that demand may be starting to fade. Expression of an intention to buy a car is off 50 percent from the program’s peak, research firm Edmunds.com of Santa Monica, California, said in a statement today. Purchase intent is a leading indicator of sales within 90 days, Edmunds.com said.

LINK:?Cash for Clunkers? Yielded Almost 700,000 Sales (Update3) - Bloomberg.com

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is online now  
Sponsored Links
Advertisement
 
post #2 of 2 (permalink) Old 08-26-2009, 05:07 PM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,754
Garage
Ford's "clunkers" sales topped 14 percent, compared with a 15 percent share for the year through July. GM reported 17 percent of "clunkers" business compared with 21 percent from January to July. Chrysler's "clunkers" share was 6.6 percent, compared with 11 percent otherwise.

Chrysler halted production for several weeks during its bankruptcy and gradually brought operations back on line. Its offers the industry's most truck-heavy lineup.

"No one had a six-month supply of cars on the ground," said Jeremy Anwyl, chief executive of Edmonds.com, a consumer resource for sales and other information about the industry. "The inventory situation for Chrysler was more extreme than for others."


Complete Article LINK:Japanese, Koreans gain most from cash for clunkers | Special Coverage | Reuters

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is online now  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Ford sales up 2.3 percent in July rickaren Chrysler/Dodge/Jeep News 0 08-03-2009 09:47 AM
Chrysler LLC Announces January 2009 U.S. Sales rickaren Chrysler/Dodge/Jeep News 0 02-03-2009 03:16 PM
Chrysler International Established Record as Sales Increased Four Percent in First Ha rickaren Chrysler/Dodge/Jeep News 0 07-05-2008 05:27 PM
Chrysler LLC Sets New Quarterly and Monthly Records For Sales Outside North America rickaren Chrysler/Dodge/Jeep News 0 04-08-2008 09:06 AM
Total Chrysler LLC December 2007 Sales Up 1 Percent rickaren Chrysler/Dodge/Jeep News 0 01-03-2008 02:07 PM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome