. Interest in Cash for Clunkers sputters
. In 'Gold Rush mentality,' demand for cars peaked in July and could fall to pre-Clunkers levels next week, report says.....
I am encouraged by the list of cars that Deejayoh posted above; people actually are trading in gas-guzzling SUVs for much smaller, fuel-efficient cars. Many of the cars on the list are ones that I recommend people go look at if in the market for a new smaller car. And it hurts not my feelings to see those Ford Exploders imbibe the liquid death!
And just in my own observations of what people are driving and what types of vehicles I see parked at my workplace, I'd say that there are significantly more cars than SUVs, as compared to say 5-10 years ago. That is encouraging. Not that I'm anti-SUV, but for most people who commute alone to work daily, there are better vehicle choices. I'm very happily getting 36-38mpg commuting in my '97 Civic.
Any predictions on when the program runs out of $ again? I'm guessing the end of September.
You know the occupants did not walk away from this one. What would you rather have in this type collision, the latest generation airbags or good old-fashioned vehicle mass?
Actually, whomever posted this photo isn't being accurate. The car in the crash scene has what looks to be a 5 bolt pattern on the one wheel that is visible. The Smart Car has a three bolt pattern. I'm thinking maybe it used to be a VW Golf or something similar.
Snopes has chimed in and says it's actually an SUV. They say it's a Ford Escape, which is ironically the most popular vehicle purchased via the Cash for Clunkers program (according to Edmunds.com).
Looking through a few photos online the wheel cap in the crash photo does seem to be a match for the Escape.
The reality is, despite all the "incentives" over the last 50 years there are still a heck of a lot of large passenger vehicles being driven on the roads so your theory fails, as usual.
You just don't like getting caught, yet again, in your "government knows what's best for us" proposals.
The US government has spent an immense amount of time, money, and soldiers' lives to ensure fuel was cheap, creating a (perverse) incentive to buy large vehicles regardless of need. The only times in modern history when smaller was perceived as better was after the 1973 oil embargo and after the 2006-2008 spike in oil prices.
If you wanted to rewrite history, significantly raising gas taxes in the late 60s, when it was obvious that OPEC wielded a pretty significant noose around our necks, would be an interesting exercise.
I'll second that. The US has spent billions subsidizing our current oil usage. In Europe, the government does levy large fuel taxes and guess what, automobiles are significantly smaller in Europe than in America.
Go ahead and debate whether or not the government should apply taxes in such a manner. It's certainly a fair question. Regardless, the results of such taxes (or lack thereof) are self apparent.
Tim, I read the analysis when you posted it last Friday and I mostly agree. I also agree that Americans won't give up their SUV's willingly. It's going to take some major economic incentive, like maybe $5 a gallon gas prices or maybe some government sponsored program. .
.
I read an article awhile back that the reason that cars with automated control systems are not progressing very rapidly is because of public resistance. What it boils down to is that the public can accept a human error rate alot larger than a machine's error rate if it threatens their safety. In other words, automated systems will have to be nearly perfect before the public will accept computer controlled cars. However, as technology improves, I am convinced we will get there some day.
.
If you do cost analysis of replacing a paid for 14 MPG SUV with a $15k econobox that gets 40 MPG, you'll be surprised at how long it takes to get your money back (think in the 6-8 year range). I did a bunch of them for people when gas was $4+/gallon and the payoff wasn't there. I always ended up advising they drive their SUV into the ground, then replace it with the economical vehicle.
As for the automation, public resistance is only one issue. Adaptive cruise control (which is really quite basic) took close to a decade to work out the kinks*. Robust steering controllers cost upwards of $100k, and require duplicate systems to satisfy NHTSA. Electronic brake controllers have major feedback issues for the driver when he takes over (if you drive a recent high end Mercedes or Maybach you'll see what I mean), and IMO are a safety issue. The sensor array to control an entire vehicle is immense, and reliable sensors are fairly expensive (and again would require duplicate or triplicate redundant systems to ensure safety). And, of course, people don't ask to be removed from the equation, they ask for iPod hookups. Eventually we will get there, at least on freeways, and I for one can't wait. I'd love to be able to hop on I-5, head to Portland and take a nice nap.
* On an early road test of one system, the vehicle went through an underpass and the ACC "saw" the bridge column and thought it was a car, promptly did a panic stop and brought the car to a halt in the middle of the freeway. Took the engineers a while to figure that one out.
WestSideBilly, all of the problems you mention with the concept of a fully-automated highway system can be worked out over time. Difficult technical challenges will be solved, costs will come down, and piece-by-piece, the system will come into place.
I never said it would happen quickly. I wouldn't be surprised to see it in my lifetime, but I'm not necessarily expecting that we'll get there in the next 75 years.
I am an electrical engineer though, so I probably tend to have a fairly optimistic view of what's achievable through dedication and applied brainpower, given enough time.
You know the occupants did not walk away from this one. What would you rather have in this type collision, the latest generation airbags or good old-fashioned vehicle mass?
Actually, whomever posted this photo isn't being accurate. The car in the crash scene has what looks to be a 5 bolt pattern on the one wheel that is visible. The Smart Car has a three bolt pattern. I'm thinking maybe it used to be a VW Golf or something similar.
Snopes has chimed in and says it's actually an SUV. They say it's a Ford Escape, which is ironically the most popular vehicle purchased via the Cash for Clunkers program (according to Edmunds.com).
Looking through a few photos online the wheel cap in the crash photo does seem to be a match for the Escape.
Wow! The driver survived and has been released from the hospital. Amaziing.
.
"Honey, I've been thinking. You know that Ford Escape that we looked at that you said you liked........"
.
.......* On an early road test of one system, the vehicle went through an underpass and the ACC "saw" the bridge column and thought it was a car, promptly did a panic stop and brought the car to a halt in the middle of the freeway. Took the engineers a while to figure that one out.
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.
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.
The main reason is liability. Can't you imagine a courtroom with the lawyer asking
"what did you do?"
"I didn't do a thing, just let my auto drive."
"And what happened?"
"It ran into a tree!"
Liability for manufacturers may be the biggested deterent to technological progress, which is unfortunate.
I have worked in the automotive industry on these types of systems (adaptive cruise control, collision avoidance, lane keeping, etc.). Here are a few thoughts:
TJ_98370 said:
I read an article awhile back that the reason that cars with automated control systems are not progressing very rapidly is because of public resistance. What it boils down to is that the public can accept a human error rate alot larger than a machine's error rate if it threatens their safety.
Yes, the unfortunate truth is that driver error (distracted/drunk driving, running red lights, etc.) is the number one cause of accidents, but accidents caused by computer/mechanical failure are the ones that get the most attention.
..................
WestSideBilly said:
Electronic brake controllers have major feedback issues for the driver when he takes over (if you drive a recent high end Mercedes or Maybach you'll see what I mean), and IMO are a safety issue. The sensor array to control an entire vehicle is immense, and reliable sensors are fairly expensive (and again would require duplicate or triplicate redundant systems to ensure safety).
Using double- or triple-modular redundancy isn't a universal cure for solving this reliability problem. Those methods rely on a random, independent failure model. In complex software systems, safety-related failures tend to be errors in the requirements or design, which aren't random or independent. That said, some of the mechanical equipment (sensors, actuators, etc.) will probably require redundancy of some kind.
Another side effect related to your comment about electronic braking systems is the tendency of people to adjust their behaviors to maintain a set amount of risk. Anti-lock braking systems and electronic stability control are great examples. These systems were designed to make the vehicle safer (on slippery roads or on turns). However, they didn't succeed in reducing accidents because people compensated by driving more dangerously (taking turns faster, driving faster on wet pavement).
..................
In aviation, there are already fully fly-by-wire systems in use, so theoretically it's possible for the automotive industry to do the same. However, there are several differences between aviation and automotive that make a huge difference in adoption of new technologies:
1) government regulation (& tort)
The aviation industry is very thoroughly regulated, and as such is shielded from many types of lawsuits that plague the automotive industry (they just need to show they met the FAA requirements). The lack of central oversight also makes it very very difficult for a fully automated highway system to be implemented (integration of different vehicles from so many different manufacturers into one automated system would be a nightmare without centralized oversight of design & development).
2) The nature of the way these systems are used
Drive-by-wire automotive systems actually have to be more reliable than fly-by-wire aviation systems because there are several orders of magnitude more automotive systems in use than aircraft, and automotive maintenance schedules are much less stringent. Another consideration is that required mean-time-to-repair the problem may be orders of magnitude smaller for automotive (cruising at altitude you may have a minute or two for recovery, but in heavy traffic at 60mph you have milliseconds).
Sorry for going on a bit, but my thesis research was in this area, and I find the topic quite interesting. I do think we will eventually move to a fully automated highway system, but I don't anticipate city streets and back-roads becoming fully automated in my lifetime. Anything is possible, though. Fully automated highway systems will never be perfect - there are always tradeoffs between different types of technologies - but I believe the net benefit will be a safer highway system.
The main reason is liability. Can't you imagine a courtroom with the lawyer asking
"what did you do?"
"I didn't do a thing, just let my auto drive."
"And what happened?"
"It ran into a tree!"
Liability for manufacturers may be the biggested deterent to technological progress, which is unfortunate.
The manufacturers are damned if they do, damned if they don't. If they adopt a technology that saves 100 lives, but causes 2 deaths, they will pay out the nose for those 2 deaths (e.g., airbags). If they don't adopt a technology right away but wait until they are certain they have worked out the kinks, they will pay out the nose for any deaths that occurred from the time the technology was available to the time they adopted it (that happened to manufacturers who weren't the first to include airbags).
.......Another side effect related to your comment about electronic braking systems is the tendency of people to adjust their behaviors to maintain a set amount of risk. Anti-lock braking systems and electronic stability control are great examples. These systems were designed to make the vehicle safer (on slippery roads or on turns). However, they didn't succeed in reducing accidents because people compensated by driving more dangerously (taking turns faster, driving faster on wet pavement).......
.
Vermillionsky,
.
I had read that ABS hadn't reduced accident rates and I have been wondering why. Your post explains that mystery and is totally believable. I know for a fact that there are drivers who "push it to the limits" either deliberately or due to lack of driving skills. ABS, ESC, or TCS aren't going to help those type drivers. They only back off when they feel that they are losing or already have lost control of their vehicle.
.
.
.
It appears that Cash for Clunkers is having the desired effect, at least for the short term.
. Ford to boost production of Focus, Escape
. 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.
.
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.
,
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......
.
.....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....
.
....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.
.
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.
.
And Hyundai Motor Co. is recalling more than 3,000 employees at its plant in central Alabama to meet growing demand for its vehicles.
.
Chrysler is adding overtime at most of its plants to respond to expected demand for its 2010 models, a spokesman said.
.
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.
.
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.
.
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.
.
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.
.
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.
.
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.
.
Ford plans to produce 570,000 vehicles in the fourth quarter.......
. Interest Fizzles in Cash for Clunkers
. 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..............
.
...........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.......
.
....... 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 ......
.
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.
.
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.
. 'Cash for clunkers' won't be running much longer, government says
. The Transportation Department says it'll soon announce a plan for winding down the popular but problem-plagued car buyer program......
.
. 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......
.
.
Wow! Now we are going to get a "Cash for Clunkers" program for appliances!
.
I'll see if I can find some video of test crashes of sub-compact refrigerators to link in. :?
. 'Cash For Clunker Appliances' Program Launching In Washington
. SEATTLE -- As the Cash for Clunkers program winds down, a "cash for clunker" appliances program is about to launch in Washington.......
.
.
This video should demonstrate the fact that full sized refrigerators are safer than sub-compact refrigerators!!!!
. WMMR Preston & Steve Refrigerator Demolition
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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!!!!!
.
Okay. Whatever. Have a nice day.
.
. Cash for Clunkers jolt to US car sales, not a fix
. WASHINGTON (AP) -- Now comes the hard part for the auto industry -- luring customers without big Cash for Clunkers discounts.
.
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.
.
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.
.
"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 borrowing demand forward meme doesn't work because the old cars were destroyed. Production has to increase to replace those.
Now for the important issue,
I'll see if I can find some video of test crashes of sub-compact refrigerators to link in.
the Cash for Clunkers program was really a way help banks by motivating people to buy better gas mileage cars so they would stop renting close-in apartments and buy the vacant houses in distant burbs. For further motivation, now they need to help people get rid of the trashed out appliances in those houses. This theory makes testable predictions: next we will see Cash for Damaged Drywall and Cabinetry, Cash for Grass Clippings and Dried up Plants, and Cash for Empty Cans of Paint.
The borrowing demand forward meme doesn't work because the old cars were destroyed. Production has to increase to replace those.
why does production have to increase? the destroyed cars have already been replaced from inventory. Production was ahead of demand. that is kind of the point of the program, isn't it?
Comments
Yeah, except Edmonds.com says the number one car bought with the Clunkers program is the Ford Escape.
Interest in Cash for Clunkers sputters
.
In 'Gold Rush mentality,' demand for cars peaked in July and could fall to pre-Clunkers levels next week, report says.....
And just in my own observations of what people are driving and what types of vehicles I see parked at my workplace, I'd say that there are significantly more cars than SUVs, as compared to say 5-10 years ago. That is encouraging. Not that I'm anti-SUV, but for most people who commute alone to work daily, there are better vehicle choices. I'm very happily getting 36-38mpg commuting in my '97 Civic.
Any predictions on when the program runs out of $ again? I'm guessing the end of September.
Edmonds.com? Really TJ? Was that next to the ferry schedule?
wwww.edmunds.com
Eye have a spelling chequer,
It came with my Pea Sea.
It plane lee marks four my revue
Miss Steaks I can knot sea.
Looking through a few photos online the wheel cap in the crash photo does seem to be a match for the Escape.
I'll second that. The US has spent billions subsidizing our current oil usage. In Europe, the government does levy large fuel taxes and guess what, automobiles are significantly smaller in Europe than in America.
Go ahead and debate whether or not the government should apply taxes in such a manner. It's certainly a fair question. Regardless, the results of such taxes (or lack thereof) are self apparent.
If you do cost analysis of replacing a paid for 14 MPG SUV with a $15k econobox that gets 40 MPG, you'll be surprised at how long it takes to get your money back (think in the 6-8 year range). I did a bunch of them for people when gas was $4+/gallon and the payoff wasn't there. I always ended up advising they drive their SUV into the ground, then replace it with the economical vehicle.
As for the automation, public resistance is only one issue. Adaptive cruise control (which is really quite basic) took close to a decade to work out the kinks*. Robust steering controllers cost upwards of $100k, and require duplicate systems to satisfy NHTSA. Electronic brake controllers have major feedback issues for the driver when he takes over (if you drive a recent high end Mercedes or Maybach you'll see what I mean), and IMO are a safety issue. The sensor array to control an entire vehicle is immense, and reliable sensors are fairly expensive (and again would require duplicate or triplicate redundant systems to ensure safety). And, of course, people don't ask to be removed from the equation, they ask for iPod hookups. Eventually we will get there, at least on freeways, and I for one can't wait. I'd love to be able to hop on I-5, head to Portland and take a nice nap.
* On an early road test of one system, the vehicle went through an underpass and the ACC "saw" the bridge column and thought it was a car, promptly did a panic stop and brought the car to a halt in the middle of the freeway. Took the engineers a while to figure that one out.
I never said it would happen quickly. I wouldn't be surprised to see it in my lifetime, but I'm not necessarily expecting that we'll get there in the next 75 years.
I am an electrical engineer though, so I probably tend to have a fairly optimistic view of what's achievable through dedication and applied brainpower, given enough time.
Wow! The driver survived and has been released from the hospital. Amaziing.
.
"Honey, I've been thinking. You know that Ford Escape that we looked at that you said you liked........"
.
Actual Smart Car test crash; Video
Funny!
The main reason is liability. Can't you imagine a courtroom with the lawyer asking
"what did you do?"
"I didn't do a thing, just let my auto drive."
"And what happened?"
"It ran into a tree!"
Liability for manufacturers may be the biggested deterent to technological progress, which is unfortunate.
TJ_98370 said:
Yes, the unfortunate truth is that driver error (distracted/drunk driving, running red lights, etc.) is the number one cause of accidents, but accidents caused by computer/mechanical failure are the ones that get the most attention.
..................
WestSideBilly said:
Using double- or triple-modular redundancy isn't a universal cure for solving this reliability problem. Those methods rely on a random, independent failure model. In complex software systems, safety-related failures tend to be errors in the requirements or design, which aren't random or independent. That said, some of the mechanical equipment (sensors, actuators, etc.) will probably require redundancy of some kind.
Another side effect related to your comment about electronic braking systems is the tendency of people to adjust their behaviors to maintain a set amount of risk. Anti-lock braking systems and electronic stability control are great examples. These systems were designed to make the vehicle safer (on slippery roads or on turns). However, they didn't succeed in reducing accidents because people compensated by driving more dangerously (taking turns faster, driving faster on wet pavement).
..................
In aviation, there are already fully fly-by-wire systems in use, so theoretically it's possible for the automotive industry to do the same. However, there are several differences between aviation and automotive that make a huge difference in adoption of new technologies:
1) government regulation (& tort)
The aviation industry is very thoroughly regulated, and as such is shielded from many types of lawsuits that plague the automotive industry (they just need to show they met the FAA requirements). The lack of central oversight also makes it very very difficult for a fully automated highway system to be implemented (integration of different vehicles from so many different manufacturers into one automated system would be a nightmare without centralized oversight of design & development).
2) The nature of the way these systems are used
Drive-by-wire automotive systems actually have to be more reliable than fly-by-wire aviation systems because there are several orders of magnitude more automotive systems in use than aircraft, and automotive maintenance schedules are much less stringent. Another consideration is that required mean-time-to-repair the problem may be orders of magnitude smaller for automotive (cruising at altitude you may have a minute or two for recovery, but in heavy traffic at 60mph you have milliseconds).
Sorry for going on a bit, but my thesis research was in this area, and I find the topic quite interesting. I do think we will eventually move to a fully automated highway system, but I don't anticipate city streets and back-roads becoming fully automated in my lifetime. Anything is possible, though. Fully automated highway systems will never be perfect - there are always tradeoffs between different types of technologies - but I believe the net benefit will be a safer highway system.
The manufacturers are damned if they do, damned if they don't. If they adopt a technology that saves 100 lives, but causes 2 deaths, they will pay out the nose for those 2 deaths (e.g., airbags). If they don't adopt a technology right away but wait until they are certain they have worked out the kinks, they will pay out the nose for any deaths that occurred from the time the technology was available to the time they adopted it (that happened to manufacturers who weren't the first to include airbags).
Vermillionsky,
.
I had read that ABS hadn't reduced accident rates and I have been wondering why. Your post explains that mystery and is totally believable. I know for a fact that there are drivers who "push it to the limits" either deliberately or due to lack of driving skills. ABS, ESC, or TCS aren't going to help those type drivers. They only back off when they feel that they are losing or already have lost control of their vehicle.
.
.
It appears that Cash for Clunkers is having the desired effect, at least for the short term.
.
Ford to boost production of Focus, Escape
.
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.
.
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.
,
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......
.
.....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....
.
....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.
.
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.
.
And Hyundai Motor Co. is recalling more than 3,000 employees at its plant in central Alabama to meet growing demand for its vehicles.
.
Chrysler is adding overtime at most of its plants to respond to expected demand for its 2010 models, a spokesman said.
.
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.
.
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.
.
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.
.
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.
.
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.
.
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.
.
Ford plans to produce 570,000 vehicles in the fourth quarter.......
Interest Fizzles in Cash for Clunkers
.
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..............
.
...........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.......
.
....... 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 ......
.
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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'Cash for clunkers' won't be running much longer, government says
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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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So long "Cash for Clunkers", we hardly knew ye.
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'Cash for Clunkers' Program Set to End Monday at 8 p.m.
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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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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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'Cash For Clunker Appliances' Program Launching In Washington
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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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This video should demonstrate the fact that full sized refrigerators are safer than sub-compact refrigerators!!!!
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WMMR Preston & Steve Refrigerator Demolition
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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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Cash for Clunkers jolt to US car sales, not a fix
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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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Now for the important issue,
the Cash for Clunkers program was really a way help banks by motivating people to buy better gas mileage cars so they would stop renting close-in apartments and buy the vacant houses in distant burbs. For further motivation, now they need to help people get rid of the trashed out appliances in those houses. This theory makes testable predictions: next we will see Cash for Damaged Drywall and Cabinetry, Cash for Grass Clippings and Dried up Plants, and Cash for Empty Cans of Paint.
why does production have to increase? the destroyed cars have already been replaced from inventory. Production was ahead of demand. that is kind of the point of the program, isn't it?