Business

Closing Cash for Clunkers.
by Milota Sidorova

As a citizen of the Slovak Republic, the country unfortunately based on auto industry, I know something about Cash for Clunkers program provided by our government. The aim was to boost car sales by easy meaning – in exchange for you old car you get significant discount on buying one. One wouldn’t believe how many people literally jumped to tear off the opportunity. Even my old cheapskate neighbors who never spent penny more did so. What to say? Considering from the short perspective it was good deal, but after second round of Cash for Clunkers the base of buy willing customers dried up here. It’s time to seek long lasting solutions. Last Tuesday was the d! eadline for American car dealers to submit data of customers who used American verse of Cash for Clunkers program. Just like here, everybody from President Obama down to ordinary salesmen said it made huge success. Economically, let’s add 0.3 or 0.4 percent to the domestic growth. Government injected more than $3 billion into the program that was lasting not even from the last month. Reports say sales went up almost 700,000 in July/August. President suggested the program met the goal because more than 41,000 jobs have been created such as new shifts. Who was the most successful dealer? Americans seemed to prefer mostly Japanese cars that took over 41 percent of the yield, before domestic unfortunate Detroit carmakers. The most popular car was Toyota Corolla. The Honda Civic, Toyota Camry and Ford Focus held the next three top spots. People could get discount on cars spending gallon on at least 18 miles. Report however, says that most of the purchased cars went up wi! th prices, so customers rushing for the money, didn’t no! tice the y were buying more expensive car. Government didn’t say whether it was about to open second round of Cash for Clunkers program. Anyway it must be clear it is not the system long lasting solution.

related story (sgx15241): http://news.yahoo.com/s/ap/20090826/ap_on_bi_ge/us_cash_for_...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With glo! bal clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 11:20 AM