Auto Ramblings

National Automobile Dealers Association

NADA asked the Federal Government on August 19, 2009 to suspend the CARS Cash for Clunkers Program because, by their research, the $3B has been exhausted.

It is clear that the CARS program has lifted vehicle production quotas, especially for fuel efficient vehicles.  Automotive Tribune is of the opinion that winding the CARS program down will result in a long term Federal program that will encourage purchase of high mileage vehicles.

‘Old Chrysler’ Creditors Sue Daimler Over Assets

Daimler still owns 19.9% of Chrysler.  However, since the failed “Merger of Equals” things have again started to heat up.  It is clear that a great deal of discontent is evident because of the Chrysler meltdown.  Watching this litigation will definitely produce another round of very nasty automotive finger pointing.  There will be plenty of media coverage … stay tuned.

Cash For Clunkers Program

Car Allowance Rebate System = Cash For Clunkers Program

Cash for clunkers may or may not be the correct terminology for this Federal Program, depending on what you are bringing to the dealership.  However, having the opportunity to receive some Federal financial assistance to purchase a replacement vehicle has motivated many customers to come into dealerships.

What Is The Effect

US auto sales totaled 4.8 million units in the first half of the year which calculates to about 800,000 vehicles per month.  With the CARS program in place sales jumped to 1M vehicles in July.  Going from 800k to 1M represents a 25% increase in sales for the month.

$3500 to $4500

CARS Program information is pretty well explained explained and HERE is the Simple Explanation.  Or, if you want to review the complete US Department of Transportation Code of Federal Regulations then HERE is the 136 page Detailed Explanation.

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