Big winners in Cash for Clunkers: Toyota, Honda, and Nissan; Update: Parts business big losers?

Hot Air ^ | August 27, 2009 | Ed Morrissey

[Lou Budvis]

The Obama administration spent three billion dollars subsidizing the destruction of 700,000 vehicles in order to boost car sales. Which auto makers actually benefited from these American tax subsidies? Reuters reports that foreign car manufacturers gained market share, while the two bailed-out American automakers lost significant portions of theirs in the big summer sale. Only Ford managed to hold its own:

[Lou Budvis]

Nice job. American tax $$ used by foreign competitors of US owned car companies to grab bigger market share.

[VaBthang4]

They make the best cars.

???

What did folks think was going to happen?

[crymeariver]

Boy, are the Unions ever going to be mad! It certainly was an oversight that the program didn’t forbid foreign purchases.

[EggsAckley]

In my mind my twin 16yo grandsons are the real losers. They’ll not be able to buy new cars for years, and there’s not nearly enough clunkers to go around now.

[ex-snook]

What else is new? Washington keeps providing stimulus to imports. If we don’t start to produce more of what we consume, we won’t have any recovery.

[DonaldC]

That’s exactly right, unless of course we can print enough money to prop up the world.

[airborne]

Rumor is that the cost of used cars will rise 10% or more.

[Glenn]

What will the auto companies do now? All the good buyers have purchased.

[ChiMark]

This is why targeting industries is an economic no-no.
It did’nt work during the depression and it ain’t working now.

[11th Commandment]

This C4C is the perfect example of unintended consequences from government created programs. The after market part industry being hurt by this is the latest in a long list people hurt by this program. Thanks for the post!

[Nachum]

The list, ping

[IYAS9YAS]

They’ll not be able to buy new cars for years, and there’s not nearly enough clunkers to go around now.

Sure there are. Check out craigslist, cars.com and others. Plenty of good quality used cars out there right now. Many are reasonably priced. A lot of the cars in the right year range didn't qualify because they beat the mileage requirement (18 MPG). The 2001 Buick Regal GS I used to own would not have qualified even though it was a supercharged 3.8 liter and ran on premium. Average MPG was too high.

[papasmurf]

The Cash-for-Clunkers program generated 690,000 car sales, with Toyota accounting for 19.4 percent of all sales, the U.S. Department of Transportation said on Wednesday.

Toyota, Honda and Nissan sold 41.1 percent of the new vehicles in the program. In contrast, Detroit's three automakers — Ford, GM and Chrysler — accounted for 38.6 percent of the vehicles sold under the program.

The Toyota Corolla was the top seller under Cash for Clunkers, followed by the Honda Civic, Toyota Camry, Ford Focus and Hyundai Elantra. The rest of the vehicles in the Top 10 list included the Nissan Versa, Toyota Prius, Honda Accord, Honda Fit and Ford Escape.

There were no models from GM or Chrysler in the top 10 list. However, GM came in second in overall clunker sales at 17.6 percent. Ford was number three at 14.4 percent, according to the feds. Volvo was at the bottom of the list with 0.1 percent of clunker sales.

About 84 percent of consumers traded in trucks and 59 percent purchased passenger cars, especially the smaller, more fuel-efficient ones that are the bread-and-butter vehicles of the Asian automakers.

10 Most Traded in CLUNKERS

1. Ford Explorer 4WD-15 mpg (based on 2005 Sport Trac version)
2. Ford F-150 2WD-15 mpg (based on 2005, 4.6-liter, 8-cylinder engine with automatic transmission)
3. Jeep Grand Cherokee 4WD-16 mpg based on 4-liter, 6-cylinder engine with automatic transmission
4. Jeep Cherokee 4WD-16 mpg, based on 2000 model with 4-liter, 6-cylinder engine, automatic transmission
5. Dodge Caravan/Grand Caravan 2WD-18 mpg based on 2000 model with 3.8-liter, 6-cylinder engine with automatic transmission
6. Ford Explorer 2WD-16 mpg, based on 2000 with 4-liter, 6-cylinder engine, automatic transmission
7. Chevrolet Blazer 4WD-16 mpg based on 2000 model with 4.3 liter, 6-cylinder engine, automatic transmission
8. Ford F-150 Pickup 4WD-14 mpg, based on 2000 model with 4.6-liter, 8-cylinder engine, automatic transmission
9. Chevrolet C1500 Pickup 2WD-16 mpg based on 2000 model with 4.8 liter, 8-cylinder engine, automatic transmission
10. Ford Windstar FWD Van-18 mpg based on 3.8 liter, 6-cylinder engine with automatic transmission


Sources: Edmunds.com and MSNBC.com

[GonzoGOP]

Well a lot of the Hondas and Toyotas are made here, in non union shops, so it isn't a total loss. Did they actually expect anyone to buy GM? Nobody is going to wait in line for GM’s new Socialist Peoples Environmental Workers Car (SPEW) when there is a Honda dealer down the road.

[EyeGuy]

Thanks to all you hard-working honest taxpayers for giving me $4500 for my daughters 1996 Ford Explorer (best vehicle I’ve ever owned), which MIGHT have been worth $1650 in true market value.

[angcat]

I love my Explorer, I would never get rid of it.

[ImJustAnotherOkie]

I pose a question?

Autos Sold 700,000 * 4,500 per car = 3,150,000,000.

Cash Recovered thru taxible income say 20% tax rate.

3,150,000,000 * 20% = 630,000,000

Where is that 630 million dollars going to be spent?

[billygoatgruff]

Not sure about the best cars.... I have a 2009 Toyota Matrix and have had it in the shop 3 times now for the same problem, knocking engine. They finally found the problem today. I need a new timing gear and oil consumtion valve. This car has just a little over 6,000 miles on it.

[billygoatgruff]

And might I add, the 5 Fords I’ve owned before this Toyota had never needed repair before 60,000 miles.

[ImJustAnotherOkie]

You cannot apply reason or logic, the Obama admin is a clusterfiretruck.

[model B]

Rumor is that the cost of used cars will rise 10% or more.

_______________________________________________________

already has in my father’s neck of the woods — more than 10% btw.

[model B]

Where is that 630 million dollars going to be spent?
___________________________________________________

paying the interest on our record federal debt.

[TYVets]

I wonder how many of the General Motors bond holders that 0bama put the screws to just had to smile when the the top 10 list of big sellers did not include any Government Motors cars..

[VaBthang4]

Shoulda bought American!

[papasmurf]

You’re welcome, please drive safely and in good health. LOL

I’m not one who begrudges, even, a Conservative for taking advantage of these programs that, even though we didn’t ask for nor want them, OUR tax dollars pays for. Better you than a freakin’ Lib, I say.

What’d you buy, anyway? A Ford, I hope.

[papasmurf]

I’m not, usually, one to keep a vehicle longer than a year or two, although I do now. My wife, OTOH, keeps them at least three years, if not longer...and she drives 110 miles a day!

She’s from Germany, and swore by Toyotas. In our early years of marriage she had Toyota’s and Chevy’s. Now, she will only drive a Hyundai. Four in a row, and she wants another one.

[EyeGuy]

For the record, I was against this idiotic program and still am. I would have voted against it if given a choice.

But, ONCE IN PLACE, with the money already spent by the clueless shiny-teeth hairdos in DC, my wife and I viewed it as a small rebate on the large amount of taxes we’ve paid over the years.

[DemonDeac]

“They make the best cars.

???

What did folks think was going to happen?”

Exactly.