Colossal Screwup?
The Obama administration spent three billion dollars subsidizing the destruction of 700,000 vehicles in order to boost car sales. Which auto makers actually benefited from these American tax subsidies? Reuters reports that foreign car manufacturers gained market share, while the two bailed-out American automakers lost significant portions of theirs in the big summer sale. Only Ford managed to hold its own:
Transportation Department figures on the “clunkers” incentive, which offered consumers up to $4,500 when they traded in their older vehicles for more fuel efficient new models, showed on Wednesday that total sales amounted to just under 700,000 with $2.87 billion in rebates. …
According to the figures, Toyota’s “clunkers” market share was 19.4 percent, compared with its year-to-date U.S. share through July of 17 percent. Honda captured 13 percent of the “clunkers” market compared with 11 percent for the first seven months of the year.
Nissan accounted for nearly 9 percent of “clunkers” sales compared with a January-July share of 7 percent. Hyundai was the biggest winner with a 7 percent share compared with 3 percent for the year through July.
Ford’s “clunkers” sales topped 14 percent, compared with a 15 percent share for the year through July. GM reported 17 percent of “clunkers” business compared with 21 percent from January to July. Chrysler’s “clunkers” share was 6.6 percent, compared with 11 percent otherwise.
Ford had the only two American-made vehicles in the top 10 models sold in Cash for Clunkers. Toyota and Honda both had three, while Nissan and Hyundai both had one each. Two of Toyota’s entries were in the top three, the Corolla and the Camry.
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mike Says:
In fairness some of those Toyota and Honda vehicles would have been manufactured in US plants. Without restrictions though, which likely would of contravened WTO rules, what do you expect. People are going to buy what they like.
mid island mike
Posted on August 27th, 2009 at 2:59 pm
Wayne Says:
Government sponsored vandalism. Why not pay punks to paint graffiti on bridges and park benches, and break windows and slash tyres?
Posted on August 27th, 2009 at 4:14 pm
ford fan Says:
I think we should let one of these foreign automaker aquire othese missmanaged companies it should be swallowed by a more efficient company that quite frankly makes abetter vehicle democracy has spoken,its business in the USA.Id love to drive a camero with a twin turbo v6.Chevys ZR1 nO DOUBT a unattanable supercar you go from supercar to cavaliers with superchargers aka cobalt dodge has huge vehicles charger double jeeps junk caliber 300c nice but huge.fast jeep4 by4 libertys junk ford did ok all there junk got traded explorer, expedition to nowhere.new mustangs safe love the style of the camero retro like the charger but to little to late.these cars come with up to a 6.1 litre thats cool but not wrong direction of the intended goal of emissions.The foreign countries have out managed there competitorin our own country embarrasing……Yes we are owned by foreign countries of origin but it still the american way no corprate crying,But the rich must take from the poor to stay rich in if they dont earn it?Congrats to the super wealty wealty and old money you win again like yankees againts the sox u win a battle but not the war.
Posted on August 27th, 2009 at 4:33 pm
beentheredonethat Says:
Check the link.
http://www.youtube.com/watch?v=NzlG28B-R8Y
Posted on August 27th, 2009 at 9:17 pm