Cash for Clunkers Takes Bite Out of Auto Sales

By: Associated Press
By: Associated Press
American automakers see sales fall in September.

FILE - In this combo made with file photos, logos for the Big Three automobile manufacturers, General Motors, Ford, and Chrysler, are shown. The Detroit Three have made big improvements to new vehicle quality over the last year, but still lag behind their foreign competitors, according to the marketing and consulting company J.D. Power and Associates. (AP File Photos)

GM, Chrysler and Ford say their September sales fell, revealing a tough hangover from this summer's Cash for Clunkers buying spree.

But Hyundai bucked the trend, reporting a 27-percent rise in sales last month over a year earlier.

Automakers got a big lift in July and August from clunkers, which spurred sales of nearly 700,000 new cars and trucks. The government program's big discounts lured in many customers who otherwise would have waited until later in the year to walk into dealerships.

General Motors Corp. says sales fell 45 percent from a year earlier. Chrysler Group LLC says sales slid 42 percent. Ford Motor Co. was down 5.1 percent, breaking a two-month streak of gains.

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  • by shirley Location: no sense,Mich. on Oct 4, 2009 at 07:12 AM
    The unions that run these car companies are still making good.They didn't save many jobs though.CEOS still get high wages.Auto prices are not coming down.Many no longer have good credit to buy anything.Many are on unemployment and NO jobs to be found.Nothing is being done to keep jobs in MI or the states.Many went in debt to buy according to the jobs they had,now the job is gone after years of working.What the auto companies laid off alone,took away some of their best buyers.I really don't know what car companies expect their sales to be?White collar workers got their pay back yet many will never be called back to work,or the ones in car related jobs.How long before some car companies will be wanting another Bailout?I rather drive a clunker and pay my home payments,eat, ect.I hate buying from companies that have their parts made in communist countries too.Many would buy more if things were made in the USA.Made buy our people,giving jobs to us.
  • by Anonymous on Oct 2, 2009 at 10:37 AM
    What is this all about?Car sales are down?Go figure.Didn't the program last long enough?One had to have a good job and good credit to get these loans.Would of more bought if they'd got approved?The deal made it's point.Just like the first time home buyers deal.Ones that bought cars and homes now get to pay for them and all the bills that come with them.Car companies and real estate companies and their high prices have learned nothing.Sales will drop.Prices come down and people must have good credit.That's hard without jobs,maxed out credit cards and so on.Property taxes remain high even if homes prices are lower.This don't work either.Mich gov passed on problems by cutting what counties get to make their budgets.Now lets see what this causes.Higher property taxes?That won't work and will cause more to loose homes.Counties better be getting some people to run them that can find ways to get jobs into their counties.Mi upper gov can't do it.Jobs will fix many problems.So get busy.
  • by sue Location: Jackson Michigan on Oct 2, 2009 at 09:38 AM
    Why would car companies expect sales to continue?The deal only run so long.Now Was this telling auto companies they needed to lower their prices at least 4,500$.the deal as it was was only for those with good paying jobs with good credit.It gave them the choice to buy new cars and pay full coverage insurances.If some did this deal and loose their jobs well it is going to be a problem.It helped banks and insurance companies and just gave some back about what they paid out in taxes for a yr or two.It was a trick to help put money into the economy.Just like the first time home buyer deal.The deals could of went on longer but?The USA government can do these deals so what about "DEALS" to keep jobs in states and the USA.As unemployment goes UP,people go down.This country is not going to run without enough jobs to put all to work.Deals to the ones who could afford,Not many fell into that bracket as I still see many clunkers on the road.The one I drive is dependable and works great in winter.
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