It 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.
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?











Reader Comments (Page 1 of 3)
8-28-2009 @ 5:06PM
Frank said...
I think the dirty tricks Chrysler and GM played on the people also helped FORD and the foreign cars.
8-28-2009 @ 5:25PM
artalbec said...
The economy needed a boost, the stimulus money is still working its way to the local jobs. I think the auto industry had a couple of problems, first 2008 and 2009 models were backed up including imports on the ports of USA, and by moving the inventory the new models can come out to replace the old ones. We are getting jobs for the auto manufactures to increase which will help the jobless. The people who bought cars should have had good credit ratings and income to buy those cars? I believe there is pent up demand for new cars, I have been holding of buying a new car due to job insecurtiy, but if I had a clunker I would have taken it in and bought me something economical. So let's hope everything that the government is doing is helping the Greatest Nation in the World come out of this bad recession, even though things will probably get worse before they get better.
8-28-2009 @ 5:43PM
paul feng said...
TO ALL FELLOW AMERICAN,
AFTER THE RECESSION, IT WILL BE A DEPRESSION.
WHY?
1. THE NATIONAL DEBT IS SO CRIPPLING LIKE
20 TRILLION BY THE NEXT DECADE.
2. ONLY SOLUTIONS TO PAY DEBT ARE:
A. RAISE TAXES LIKE EVERY STATE IS ALREADY
DOING.
B. BORROW MORE MONEY LIKE WHO IS GOING TO
LEND IT TO US. CHINESE, JAPANESE AUTO
MAKERS WHO MADE THE MOST AT THE
TAXPAYERS EXPENSE.
C. CUT SPENDING LIKE THIS CONGRESS IS DOING.
D. DECLARE IN SOLVENCY.
FOLKS, YOU HAVE TO TAKE A COMPETENCY AND
AND A MATH TEST TO WORK AT STARBUCKS. MAYBE
OUR CON--GRESS SHOULD A ONE TOO BEFORE THEY
CAN GET ELECTED. WHAT DO YOU THINK?
8-29-2009 @ 11:43AM
soren.k said...
why is it ok to waste 900b in iraq? but help americans in america?
8-29-2009 @ 9:24AM
Joe said...
The fact that my tax dollars went for people to buy toyotas and hondas is ridiculous! This should have been an Domestic program only... American dollars on American vehicles!!! The people of this country need to wake up!
8-28-2009 @ 6:06PM
fyzoone said...
It all seems like a big shell game. The only benefit I see
is we gained a few more higher mpg cars on the road.
I guess the taxpayer subsidizes just about everything
at this point.
8-28-2009 @ 6:24PM
drrdieringer said...
Nothing wrong with the idea..even a better idea.. it should of benefited only american car companies.
8-28-2009 @ 6:30PM
charlesharris53 said...
toyota ( with 3 ) was the big winner. ford came in 4th out of 5 top spots. besides, has anyone heard that the money, $4500, that was taxpayers money given to people to buy cars from there own factories after they turned theirs in is now to be claimed as taxable income? so i guess the government let this little bit of info out of the deal. so really if you turned in a decent car you really got screwed.
8-28-2009 @ 6:37PM
Erik said...
The C4C program was like putting a bandaid on a severed leg. A temporary fix that costed the US tax payers 3 billion dollars, but will have little if any effect on the economy.
8-28-2009 @ 6:52PM
NALA said...
OBAMA, PELOSI, REID, GEITHNER AND ACORNMAFIA, THEY ARE RUINING OUR COUNTRY !
WE MUST STOP THEM!, MARXIST THEY ARE = HUGO CHAVEZ, AND FIDEL CASTRO ( COMUNIST).
REFORM AMERICA ? WITH THOSE FELLOWS.? NO THANKS!
I WANT MY COUNTRY BACK,,AND FREEDOM.
CHANGE ? FOR WORST !!!!
WAKE UP AMERICA !, DEMOCRATS, REPUBLICANS ANS INDEPENDENT WE TOGETHER MUST STOP IT !
8-28-2009 @ 6:56PM
bryan said...
All the stimulus money that was given to banks to lend to people who can't pay back what they owe and money given to automakers to produce cars we can't afford to buy, if that money had been given to the taxpayers to begin with we could have paid back the banks and bought the cars and stimulated things a lot better and faster.
8-28-2009 @ 7:21PM
Barry said...
The cash for clunkers was a mistake, in that it is a bandaide, and not many people are talking about the impact on the used automobile sources for those under privelidged people who must get to work in older cars. Also the fact that cash for clunkers was not limited to US manufactured automobiles, which in my opinion it should have been targeting. The money is gone, the stimulation to demand caused by the promotion is gone, the need for additional workers is gone, but not the increased tax burden for the billions added to the national debt. I hardly think the small number of these purchased cars which are supposed to be replacing less fuel efficient cars will have much of any impact on global warming except in the minds of politicians.
8-28-2009 @ 8:35PM
ij70 said...
There is no American car makers, they are multinationals. There is no point complaining about people buying Toyota, Honda, Nissan, etc. Buy what you want and can afford. Let your wallet tell the industry what you want to see from them.
8-28-2009 @ 8:54PM
pd39 said...
Any increase in auto sales is questionable, because the cash for clunkers program is nothing more or less than a small scale "homes for everybody" scam. This will cause an artificial bumb in sales, income, and market, but the end result will be another flood of foreclosures, this time on cars. I already got a call today from a local dealership. Seems some idiot used my ID and YOUR $4,500 to buy a brand new car, and is already behind in payments. You people really made a BIG mistake allowing the media to BS you for 8 years of Bush, then electing a bunch of democrats in 2006 - coincidentally one year before the housing crash, and stacking the deck so solidly against republicans that they can't do anything to save your sorry azzes. Maybe next time you'll educate yourselves, put in a few minutes of research, and KNOW something about the person you are voting for. There is a reason we have a multiple party system, if only we were smart enough to make use of it!
8-28-2009 @ 9:12PM
n2640b said...
Now that tax payers money for cash for clunkers is over so are the car sales!! It was crazy to destroy all those cars when some people dont have a car or some of the clunkers were better then their own car!! We have a clunker we will donate to purple heart as we do have 2 newer cars and dont need the 3rd one any longer!! Anyhow I think anyone who was considering buying a new car and used cash for clunkers they have their new car..Obamas auto factories may have to lay off!! Plus people dont forget to claim your cash for clunkers on your income tax because Obama says the cash will be taxed and counted as income!!
8-28-2009 @ 10:03PM
kellerbdk said...
THE PROGRAM SHOULD HAVE BEEN IN DOMESTIC BUILT (BIG THREE) ONLY.NO MATTER WHERE YOUR IMPORT IS BUILT THE PROFIT STILL LEAVES THE COUNTRY.THERE CAN BE INCENTIVES TO BUY IMPORTS,BUT NOT TAXPAYER $$$$
THE MONEY GIVEN TO FEED IMPORTS COULD HAVE BEEN USED FOR OTHER PRODUCT INCENTIVES BUILT IN THIS COUNTRY!!!
8-28-2009 @ 10:33PM
Ironchefjay2 said...
Foe those idiots out there............Toyota is built in America by Americans as are many cars by "non-American" companies.
However your avarage GM is built in Mexico and Canada.
So tell me.......besides supporting the scum sucking unions here in the USA what good does it do to by a GM aka Obama Motors car?
Just food for thought!
8-28-2009 @ 10:52PM
Duke said...
Car sales will be slow for some time now. However, the imports will continue to chip away at market share. They are poised to take advantage of the vacuum left by GM getting rid of Pontiac, Hummer, Saab, Saturn and Opel. The Asian imports will be ready to fill that void with Scions, Toyotas, Hondas, Subarus, Kias, Hyundais, and Mitsubishis. Sad to see the domestic auto industry be reduced to a fraction of what they were.
8-28-2009 @ 10:55PM
annette said...
We own a towing and auto service center. This little program adsolutely slammed our business into the dirt. No one got there cars worked on the past two weeks,. And when you are a small struggling through this recession business owner 2 bad weeks crushes you.
PLus all the other terrible things the government doesn't let you in on. Like... there will be very limited used cars for sale now to those who can't afford new nad buy used, because tradeins had to be crushed. Also the scrap metal industry is overl loaded ... forcing prices down.
Not to say the givens.... this is our tax dollars paying for this. NOTHING IN LIFE IS FREE. So I can't afford a new car .... our business plummeted, we can't crush any of the junk cars we have from wrecks, because the price is too low to make the trip worth it, and my taxes will go up to pay for those who got new cars ....SO WHO DID this help???
8-28-2009 @ 11:30PM
Michael said...
It's simple. Trade-in a clunker that is paid for and has only basic insurance. You can't or dont want to afford a new car. You've made a good decision. Hey look over here! Buy a new car and cash in! In return you have a new car, new financing, and full coverage to which must go with it. Who wins: Insurnace companies, Financial institiutions, Automakers, and of course the environment.
What you get: An increase in monthly payments. This may or may not be offset by fuel consumption. Probably not relative to the increase in principal payments plus interest, full coverage insurnace payments, plus tax, desination fees, down payment etc.
Will this help you?