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C4C was a nice sugar high that boosted sales temporarily, but now there will be a crash in sales after it.
Oh, and Chrysler is ed.
DETROIT (AP) - The popular Cash for Clunkers program boosted Ford Motor Co.'s U.S. sales in August by 17.2 percent over last year, but shortages of smaller vehicles weighed on rival Chrysler Group LLC. The program, which ended on Aug. 24, drew hordes of buyers into quiet showrooms by offering up to $4,500 toward new, more fuel-efficient cars and trucks. The hefty rebates gave automakers and dealers a much-needed lift, spurring 690,114 new sales, many of them during August, at a taxpayer cost of $2.88 billion.
Other automakers are expected to release U.S. sales figures later Tuesday. Combined, the results are likely to mark the first year-over-year monthly sales gain since October 2007.
Ford sold 181,826 cars and light trucks compared with 115,117 in August 2008, when high gas prices and growing economic uncertainty kept people away from showrooms.
Two of Ford's vehicles—the Focus and Escape—were among the top selling cars under the clunkers program. Sales of the Focus rose 56 percent while those of the Escape crossover vehicle climbed 49 percent.
Meanwhile, low supplies of fuel-efficient vehicles at Chrysler kept the automaker from benefiting more from the clunkers program, whose rebates encouraged customers to buy gas sippers in exchange for guzzlers with gas mileage of 18 mpg or less.
Chrysler sales fell 15 percent to 93,222 units.
Going into August, five of Chrysler's most efficient vehicles were already at low inventory levels. Those vehicles—the Dodge Caliber, the Chrysler Sebring, the Jeep Patriot, the Jeep Compass and the Dodge Avenger—all qualified as Cash for Clunkers purchases.
To make up for the shortfalls, Chrysler is boosting production by 50,000 vehicles of most of its vehicles through the end of the year.
Consumers are expected to steer clear of dealers this autumn now that the clunker rebates are no longer available.
C4C was a nice sugar high that boosted sales temporarily, but now there will be a crash in sales after it.
Oh, and Chrysler is ed.
All of us without those Obama colored glasses on saw that already. I will assume a very small increase in sales when you consider how many people would have bought already, and at a later date. I'll bet the sales will now be weaker for the next 4 to 6 months than they would have been otherwise.
I like the sugar high analogy.
people like ford because they did not take the bailout money
That helps. There is more confidence that warranty services will be around I'll bet. Anyway, for the most part, Ford has developed some great products compared to the others.
FIAT bought a pig in a poke. Chrysler ain't gonna make it this time.
C4C is part of the fiscal stimulus needed this year. I really doubt govt didn't know about such programs in Europe cannibalizing car sales from future months.
I doubt anybody buys Ford to pay them back for not taking bail out money. People buys the cars they want, and Ford seems to be, at least domestically, the mfr meeting those wants best.
I haven't been following this close, but did we bailout GM so they could go build cars in China?
"needed"?
"People buys the cars they want"
the government should clued in on that.
Why else would this demonrat government bail them out? Everything they do is for the destruction of the USA as we know it.
I wish you taxpayers would subsidize the purchase of my new car and home.
....but yet you worship at the alter of Corporatism/globalization....go figure..
...or they build a (few) decent domestic car....if GM/Chevy/Crysler did the same, they would have seen an increase in sales too...
...they do...especially if you drive a vehicle that gets < 30 MPG...
"subsidize the purchase of .... home."
"In most cases, you can deduct all of your home mortgage interest."
Yours truly,
IRS
========
IRS also allows tax-free benefit of employer-provided health insurance.
...not to mention, developers pass on the costs for building added roads to....you guessed it, the local tax-chump...
And for not taking from me what isn't theirs I should show gra ude....what are you a slave.
No. "We" bailed out GM because the UAW gives a load of money to democrats. GM cars get built in China because that's the only location on earth where GM can build cars and actually sell them for a profit.
Bail outs are exactly that....emptying the water to keep the boat afloat.
But if the hole is not fixed....the boat will sink anyway.
I don't see the hole of paying people $30 per hour to build cars to sell to people who make $20 per hour being fixed.
I think you meant to say "the most profit"
No, I didn't. If GM was selling cars made here for a profit they wouldn't have needed a bailout. GM was losing money long before the economic crisis hit.
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