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SSC


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'Clunkers' Program Benefits Foreign Automakers More, Data Shows
Smaller, more fuel efficient vehicles like the Toyota Corolla are top sellers, while buyers are trading in SUV's like the Ford Explorer to be scrapped, turning the already dwindling number of American car owners into the growing ranks of foreign car drivers.

FOXNews.com
http://www.foxnews.com/politics/2009/08/22/clunkers-program-benefits-foreign-automakers-data-shows/?test=latestnews
Saturday, August 22, 2009


The Obama administration has declared the wildly popular 'Cash for Clunkers' program a success, saying it has revived the country's ailing auto industry and taken polluting vehicles off the road.

But the data shows that the program, which ends Monday, has apparently benefited foreign automakers more than their U.S. counterparts.

Smaller, more fuel efficient vehicles like the Toyota Corolla are top sellers, while buyers are trading in SUV's like the Ford Explorer to be scrapped, turning the already dwindling number of American car owners into the growing ranks of foreign car drivers.

Toyota vehicles accounted for 19.2 percent of the 489,269 sales, while General Motors had the second spot at 17.7 percent.

The Honda Civic was the second best-selling vehicle, followed by the Ford Focus in the third spot. Foreign cars occupied eight of the 10 spots on top-selling vehicle list. The Ford Explorer was the most traded-in vehicle under the program, with U.S. cars occupying all top 10 spots on the list.

Jonas Max-Ferris, a business analyst, told FOX News that domestic automakers did well because "they sold more cars than they would have without the program."

"But they didn't do as well as foreign car makers," he said, noting that Detroit's Big Three represent about 47 percent of U.S. car sales and only sold an estimated 42 percent under the program.

"They did a little worse than they normally would do…which means people were favoring Honda and Toyota primarily," he said. "And there's a reason for that. The program was basically geared around miles per gallon. It was not an incentive to buy U.S. cars. In many cases, the foreign car companies have better cars in those miles per gallon categories."

Car buyers have until Monday night to take advantage of the $3,500 or $4,500 incentives offered by the program, which as of Friday had used up $2 billion of the $3 billion Congress set aside for it.

Congress poured an additional $2 billion into the program when the original $1 billion ran dry in early August and as of Friday, nearly 490,000 vehicles have been sold through the program, data shows.

General Motors and Chrysler, fresh off government-led bankruptcies, have boosted production, along with Toyota, Ford and others. GM is rehiring more than 1,300 laid-off workers, Hyundai is bringing 3,000 workers back to an Alabama plant, and automakers are paying workers overtime to meet demand.

But many auto analysts questions whether the program will have a lasting impact, robbing sales from the final months of 2009 and 2010. A slight auto industry recovery in July and August could be offset by declining sales in September and October and wipe away the bump in consumer confidence.

"We've got inventories tight, prices going up, incentive activity dropping, new cars coming out in October at even higher prices," said Jeremy Anwyl, CEO of the auto Web site Edmunds.com. "There's not going to be much momentum that's going to drive sales to the levels that we've seen."

rosco 357


Veteran
i dont really have much of an opinion on this, i did hear one kia dealer say bring in a clunker, and was selling kias for 9,000 so u could walk off the lot with a new car for 4,500 bucks which is tempting if u needed cheep transportation to say work we have 2 ppl with kias, hyundia bought out kia and i think quality is pretty good on the new ones,, i know the new kia plant almost in bama lol will crush the first i forget the number, till they have things as they want them, , i bought a nissan for work, i will say i know corollas use to be make in a california plant and the chevy prism was the same car made there also just looked different but dont think they make prisms anymore,,, a salesman showed me both that sold toyotas and chevys, i imagine the cali plant is still online, but i have not checked, i just knew it use to make corollas, and probably was not the only plant, maybe some in japan also, i dont know, i know here honda make accords, and i think the honda van i think ohio makes civics but not sure,,but some honda, i could look it up but its not that important to me,even without the clunker deal those ppl probably would still have bought the same make car,, as ppl are hunting gas millage, im ever mindfull smaller cars are more dangerous, but ppl at work are buying motor cycles for work, and they are worse.one guy had a new harley a big one, and hit a deer,it was on his handle bars, he is lucky to be alive,my cousin had a barbecue restaurant and 4 kids grown and kinda retired bought a motorcycle and was just sitting in traffic him and his wife on back, and some car passing cars did not see him and thought it was an open spot, and whiped in and knocked them both off and over a guard rail down a hill and killed them both with in the last couple of years, but again im just rambling , no facts just running my mouth , lol but smaller cars are talking over. i am excited by what i posted on the chevy volt, over 200 miles per gallon as it mostly runs on electricity, but i have a post on it, but its a beautiful car, they will work on getting the price down, but the batteries i am almost sure i read have a 10 year warranty, ok i will hush, lol, take care

Guest


Guest
This was unavoidable. To have restricted sales to American brands would have violated trade agreements. All in all, I thought it was a good idea. I can't comprehend why the auto "czar" didn't anticipate many more car sales. Appears to me they just picked the figure "1 billion" outta the hat wth no forthought whatsoever. The crashing web-site and clogged paperwork support that notion.

rosco 357


Veteran
meemoon wrote:This was unavoidable. To have restricted sales to American brands would have violated trade agreements. All in all, I thought it was a good idea. I can't comprehend why the auto "czar" didn't anticipate many more car sales. Appears to me they just picked the figure "1 billion" outta the hat wth no forthought whatsoever. The crashing web-site and clogged paperwork support that notion.
yes i agree, i just saw on the tv an interview with a toyota dealer, he said his sales went through the roof, his words were at the door it was like someone turned on a faucet,he did have to hire some more ppl to handle the paper work, the thought now which make perfect sence is what is tuesday going to be like , can anyone say graveyard, lol but it will gradually pic back up,, i have mixed emotions on foreign cars, they are increasingly becoming an american car , because the factories they are made in are moving here and have been for many years, even camrys race in nascar, in the cup races, but i always pull for a chevy. for the life of me i dont understand GMC not being more aggressive in designing and building better small cars that get really good gas millage . and keep up with the forgien cars. they just did not keep up with what ppl were going to buy. ofcourse the gas prices they may not have seen coming, my sister had a ford expedition and put a forsale sign on it and parked it so ppl would see it close to her work . a guy bought it, and this was like 8 months before gas price became an issue, she says all the time she is so glad she did not wait, anyway, i hope GMC can turn things around, i grew up a chevy fan, although i bought a ford f150 truck which i do like alot, it is my first ford ever, it does have the best brakes i have ever had, and power steering . ok enough rambling, lol take care,

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