Cash for Clunkers

[jon]

That's another reason manufacturers will be reluctant to invest in automatic control, even if it makes actuarial sense. These stories will circulate long after the problem was fixed. Meanwhile, so many people follow their GPS into ditches or into oncoming traffic that it is no longer news.

[rose-colored-coolaid]

[vermillionsky]

[vermillionsky]

[TJ_98370]

[TJ_98370]

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It appears that Cash for Clunkers is having the desired effect, at least for the short term.
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Ford said Thursday it will build more of its popular Focus and Escape models and boost total vehicle production later this year to help dealers restock depleted showrooms.
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The automaker needs to keep up with demand for its Focus compact car and Escape crossover, both ranked as top sellers under the federal government's Cash for Clunkers program. The company also wants to roll out a reasonable amount of cars and trucks following earlier production cuts. That way, dealers won't run short on hot models in the final months of this year.
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Cash for Clunkers, which kicked off last month and has revived industry sales for the moment, uses rebates of up to $4,500 to entice drivers to trade in older, gas guzzlers for more fuel-efficient vehicles. To be eligible, vehicles must have combined city/highway mileage of 18 mpg or less when they were new......
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.....Ford Motor Co.'s overall North American vehicle production in the third quarter will be 2 percent higher than it forecast earlier, and 18 percent higher than a year ago. It also plans to boost its fourth-quarter output of cars and trucks by 33 percent from a year earlier....
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....Honda Motor Co. is adding Saturday overtime shifts at its auto assembly plants in East Liberty, Ohio; Lincoln, Ala.; and Greensburg, Ind. Its Civic sedan ranks as a top Clunkers seller and is built in Greensburg and Alliston, Ontario.
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Toyota Motor Corp. last month began increasing production of "core" models such as the Corolla sedan -- a top Clunkers seller -- the RAV4 crossover and the Tacoma truck at its U.S. plants.
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And Hyundai Motor Co. is recalling more than 3,000 employees at its plant in central Alabama to meet growing demand for its vehicles.
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Chrysler is adding overtime at most of its plants to respond to expected demand for its 2010 models, a spokesman said.
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GM is being more cautious. Mark LaNeve, GM's vice president of U.S. sales said the company is doing careful analysis on whether to increase production but no final decisions have been made.
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Inventories are low, he said, because GM slashed production earlier in the year. But it's unclear whether July's sales momentum will continue through the remainder of the year.
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Ford plans to build 10,000 more Focuses and Escapes this quarter. As a result, total production will rise to 495,000 vehicles in the period, up from the 485,000 expected.
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The production increase includes more than 6,000 Focuses, which get 35 mpg and rank as some of the biggest sellers under Clunkers. It also includes 3,500 Escape crossovers, among the 10 most popular cars under the program.
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The Focuses, which are small, compact cars, will be built at the Wayne Assembly Plant in Michigan, where Ford will add Saturday shifts and weekday overtime to boost production.
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The Escapes -- 5-passenger SUVs which are larger and higher than a passenger car -- will roll out of Ford's Kansas City Assembly Plant. Employees there have agreed to work two days during a planned shutdown week in August.
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Ford plans to produce 570,000 vehicles in the fourth quarter.......

[TJ_98370]

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What started with a bang could end with a whimper. The government's cash-for-clunkers program was a smash out of the gate. People stampeded showrooms after its late-July launch to trade in an old car or truck for a check of $3,500 or $4,500 to put toward buying a new, more fuel-efficient vehicle. But since the early days of the program, interest is fading..............
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...........The drop in activity has some analysts wondering how long it will take to spend the $2 billion allocated for the second wave of the program. George Pipas (Ford sales analyst) says the $2 billion, which would help sell 500,000 cars, will be used up by the first week of September. John Wolkonowicz, an analyst at IHS Global Insight, says there could be cash unspent into October or November. Executives at Ford, whose Washington lobbyists led the push for the program, think it will continue to be a success. But Pipas did say that the early sales success in August could be attributed to dealers who are getting shoppers to buy even if they don't qualify for clunker cash.......
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....... J.D. Power & Associates thinks that most of the cars purchased through the program were simply sales that would have happened this year but were pulled ahead a few months. The company believes as few as 20% of the cars bought in the program are really new sales to the market. That means as many as 80% of the cars would have been sold this year anyway, says Gary Dilts, president of J.D. Power's auto industry group. That means that there will likely be payback with some slower sales months after the program expires ......
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[Markor]

Guess there aren't a lot of buyers with clunkers left who don't realize the prices have been jacked up $4500. Meanwhile buyers without clunkers to trade are waiting for the program to end.

[TJ_98370]

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Now that Ford, Chrysler, GM, Toyota, Honda, and Hyundai (maybe more) have cranked up production, the "free money" spigot is being shut off. It remains to be seen as to what was accomplished, other than a temporary spike in sales, for the $3 billion of taxpayer funds spent.
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The Transportation Department says it'll soon announce a plan for winding down the popular but problem-plagued car buyer program......
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[TJ_98370]

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So long "Cash for Clunkers", we hardly knew ye.
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Transportation Secretary Ray LaHood announced that the popular "Cash for Clunkers" program will end at 8 p.m. on Monday (24 August) because the $3 billion allotted for trade-ins has been largely spoken for......
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[TJ_98370]

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Wow! Now we are going to get a "Cash for Clunkers" program for appliances!
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I'll see if I can find some video of test crashes of sub-compact refrigerators to link in.
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SEATTLE -- As the Cash for Clunkers program winds down, a "cash for clunker" appliances program is about to launch in Washington.......
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[TJ_98370]

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This video should demonstrate the fact that full sized refrigerators are safer than sub-compact refrigerators!!!!
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I am being told that I may be "off on a tangent" with this post. I disagree. The public needs to be informed about the negative consequences of high speed impact refrigerator collisions.This is an issue that has been ignored way too long! We need effective representaion in D.C. demanding mandatory air-bags to be installed in crisper drawers!!!
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Who is with me on this!!!!!
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Okay. Whatever. Have a nice day.
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[TJ_98370]

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WASHINGTON (AP) -- Now comes the hard part for the auto industry -- luring customers without big Cash for Clunkers discounts.
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The popular government rebates gave auto sales a jolt, but it was only temporary. Now car makers and dealerships are forced once again to confront the worst market in a quarter-century.
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While Cash for Clunkers may have proved there are still car buyers out there, it is unlikely the heavy demand will last. In fact, the big rush to car lots this month may have had the unintended effect of stealing sales from this fall and next year.
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"I am really worried about this winter," said J.P. Bishop, president of a dealership chain in central Maryland. "If you didn't buy now, the only reason you are going to buy over the next three or four months is because your car died.".........
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Yep. You're probably right, Mr. Bishop, and when Mr. Joe Carbuyer does decide to buy, there is a good chance he will want a used car because of the economy.
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[The Tim]

[jon]