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No surprise, Ford sees sales boost in August

Ford Auto SalesIt should not come as any surprise, but Ford Motor Company (NYSE: F) announced today that August saw an industry wide increase in auto sales.

Of course, the increase in sales can be attributed to the highly popular "cash for clunkers" program that brought auto buyers out in huge numbers. The August increase is the first time auto sales have moved higher in over 2 years.

All of the major automakers benefited from the "cash for clunkers" program, but Ford appears to have been one of the biggest winner, as buyers really flocked to the company's Focus compact car, and its Escape crossovers.

The program was initially allocated $1 billion, but quickly had to be adjusted to meet demands. Congress eventually lifted the allocation to $3 billion, and almost all of that was used up before the program came to an end this Monday. According to the Transportation Department, the program lead to nearly 700,000 sales at a cost to tax payers of $2.88 billion.

There are definitely valid arguments against the "cash for clunkers" program, but no one can argue against the fact that it definitely gave the auto makers a much needed boost in sales.

According to Ford's president of the America's, Mark Fields, this month Ford has already surpassed its sales from August of last year, and still has another weekend to add to those levels.

In other auto news, General Motors stated today that it expects to see auto sales rise by 2 million vehicles industry wide next year to 12.5 million vehicles. Up nicely from this year, but still below the 13.2 million vehicles sold in 2008.

What are your thoughts on the "cash for clunkers" program? Was it worth it considering the boost it gave auto makers, or just a temporary band-aid with too heavy a cost for tax payers?
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Last updated: November 25, 2009: 12:04 PM

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