Cash For Clunkers – The Resurrection
Well friends, it looks as though our greatest fears have been squashed – the CARS Act, which was already in danger of losing funds, will have an extra $2 Billion dollars in its pocket. Keep cashing in those clunkers, because $2B won’t last as long as we all think.
Senate Majority Leader Harry Reid announced the vote after lengthy negotiations between Democratic and Republican lawmakers today. Reid has said Democrats have enough votes to pass the bill, meaning consumers could take advantage of the rebates of up to $4,500 until Labor Day.
The government says more than $775 million of the existing $1 billion fund has been spent. President Barack Obama says the program will go broke by Friday if it’s not refilled by Congress. Consumers have continued to snap up the offer of $3,500 or $4,500 vouchers on new vehicles for trading in older gas-guzzlers, as new data showed Detroit automakers mostly holding their own against foreign brands among buyers.
The latest data on trades under the program showed most automakers with the same market share among buyers using vouchers as among all U.S. customers, with General Motors Co. holding 18.7%, Toyota Motor Co. at 17.9% and Ford Motor Co. at 16%. Chrysler Group LLC, with 10.6%, and Hyundai, with 6.6%, had higher market share from clunker customers.
If the Senate approves the additional money, it’s likely to lead automakers to increase production and bring back laid-off workers. Many automakers reported low inventories due to increased sales from the program at the end of July. Already Hyundai Motor Co. has added a day of production to its Montgomery, Ala., plant, and Ford is considering increases.
Source: Freep.com
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