670,557 new vehicle sales later, the Car Allowance Rebate System (CARS), popularly known as Cash for Clunkers, has come to a close. While America is collectively parking their new cars at the farthest ends of the lot to avoid door dings, the program’s end left the auto industry with smiling faces followed by frowns.
- 10.6% increase in auto sales for August 2009
- 98% of Clunker payment requests from dealers have been divvied out
- Ford and GM announced 3rd and 4th quarter production increases due to the program
- 42,000 jobs were added or saved because of the program
- Fuel economy of cars bought was 60% better than cars traded in
Unfortunately:
- Only 2 of the top ten new vehicles purchased were American brands
- All ten of the top ten cars traded in were American
- GM and Chrysler sales in September 2009 (after CARS ended) were both down more than 40% from last year
In short, the program did the trick of temporarily boosting auto sales. This was about all that anyone should have expected--anyone thinking that perhaps the orgy of new car sales would usher in a new renaissance of American car infatuation will be disappointed. It was there in the numbers--people bought more foreign cars. One thing we can take from this is that consumers won’t support an American car industry until it becomes stable. Sometimes, no amount of money will persuade someone to buy a Camaro over a Corolla.
--Brandon
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