Skip to comments.'Clunkers' program gives biggest boost to foreign carmakers
Posted on 09/02/2009 1:48:51 PM PDT by NormsRevenge
Hailed as a jump-start for the U.S. economy, the federal government's "cash for clunkers" gave the biggest boost to foreign automakers.
Overall, auto sales in August were the highest in more than a year, according to industry figures released Tuesday. Carmakers sold more than 1.2 million cars and trucks, up 1% from the same month last year and the first year-over-year sales gain since August 2007.
Much of that was a result of the clunkers program, which ran July 24 to Aug. 24 and provided hefty government rebates to consumers who traded in gas guzzlers for more fuel-efficient new vehicles.
Foreign automakers dominated the trade, accounting for 61.4% of the nearly 700,000 vehicles sold under the program. Japanese makers grabbed the biggest share, with 47% of the total, thanks to popular gas sippers such as the Toyota Prius and the Honda Fit.
But it was the scrappy South Koreans that provided the biggest sales surprise.
Hyundai, which has worked to make up ground against bigger rivals this year with innovative marketing programs and new model offerings, reported an eye-popping 47% increase in August sales. Corporate cousin Kia reported a 60% jump.
(Excerpt) Read more at latimes.com ...
Only in America.
Follow the money.
What do lobbyists drive anyway!
and this is another reason why Keynesian economics doesn’t work: you give $ to consumers and they’ll just spend it on foreign products.
How about this idea: cut taxes on American companies
For it to be a huge boost to foreign makers, doesn’t the DOT actually have to pay out those clunker rebates first?
Just sayin’... :)
Isn’t that a cute trick.. all the car dealers now await payment.. they acted in good faith.. but they fail to see they are dealing with the devil in disguise..
one more gubamint band-aid.. ouchless not available under the obamacare program
The Feds scre*** the states and Congress gave their blessing!!
Wow, are they stupid!!!
“Hyundai, which has worked to make up ground against bigger rivals this year with innovative marketing programs and new model offerings, reported an eye-popping 47% increase in August sales. Corporate cousin Kia reported a 60% jump.”
I absolutely love my Elantra GT. The thing is built like a tank, and I haven’t had a single problem with it in the six years I’ve owned it. Hyundai owns Kia now, so it doesn’t surprise me they’ve improved too.
As for the matter of “foreign automakers”..*shrug* My previous car, a Plymouth Neon, was built in Mexico City. My brother-in-law’s Subaru was built in Lafayette, Indiana. Toyota and Honda build a number of models here in the U.S and GM buys parts made in China, et cetera.
“Carmakers sold more than 1.2 million cars and trucks...Foreign automakers dominated the trade, accounting for 61.4% of the nearly 700,000 vehicles sold under the program.”
Doesn’t this mean that without the cash for clunkers only 500,000 cars and trucks would have been sold? We are really out of the recession now /sarcasm.
‘Cash for clunkers’ buyers missed out on real deals, experts say
Better bargains are expected later this year
By Jennifer Waters
September 3, 2009
Here’s his scenario: Dealers stock up on inventory and hike prices — what Anwyl said they are “supposed to do, optimize their margins” — to meet demand.
But a decline in demand after “cash for clunkers” “drives the values right back down and the net effect is we end up where we started, at best,” Gutierrez said.
So those who did not qualify may be better off waiting to trade in until later this year, when better deals are expected.
Plus, because the clunkers that got turned in end up in the scrap yard, that is putting a dent in the availability of cars priced at $4,000 and less, squeezing out a significant segment of buyers.