The Edmund car site just released a study on the true cost of the government's Cash for Clunkers program. They used the actual sales records for the period, units that were sold under the clunker program, compared the data to "non incentive" months and came up with this stunning number: $24,000 per car sold under the program! Great job feds. I'd sure like you running our marketing at the Motorplex! The sad fact is that many auto dealers are still waiting for their money! I've been told that each transaction under the program entailed 27 pages of required documentation.
The auto news only got better this week when ONE US automaker reported a profit: Ford Motor Company which is looking more and more like the ONLY intelligent auto maker as they turned down a government bailout. Stay tuned this week when Fiat will attempt to instill public confidence in Chrysler as they reveal future product plans. Listen carefully and you'll find out just how bare the new product cupboard is at Chrysler. The situation is beyond critical with virtually no new car updates until 2012 at the EARLIEST. The only new products coming in 2010-2011 are 3/4 and one ton trucks along with a new Jeep Grand Cherokee. Now those are 3 hot sellers in this market! Ouch! Some re-badged Fiat are being "Americanized" as we speak. I really don't think that FIAT is a car that comes to mind for most Americans considering a new car!
The automakers have things coming at them from all sides. New government regulations for fuel economy are certainly justified, but limiting the amount of sunlight entering the car is just bizarre. Ford Motor has a UAW that will not accept the same contract terms as they gave to GM and Chrysler. Now we hear the the government is "guiding" GM and Chrysler in product planning! This can only be a major disaster alert! Before it's over there may just be a whole new meaning to "postal van"!
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