The U.S. Government is Spending your tax dollars on cars.... Still ! Are they trying to help Obama Motors or just see how much debt they can create. Time will tell.
Congress sent President Barack Obama legislation Thursday night with an additional $2 billion for "cash for clunkers," the economy-boosting rebate program that caught the fancy of car buyers and instantly increased sales for an auto industry long mired in recession.
The government said Wednesday that more than $775 million of the original funds had been spent, accounting for the sale of nearly 185,000 new vehicles. Administration officials estimate the extra funding will last into Labor Day.
Under the program, passenger car owners are eligible for a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less for a new car getting at least 22 mpg. Vouchers of $4,500 are available for owners who trade in a passenger car getting 18 mpg or less for a model that gets at least 28 mpg.
The longer-term impact of the program is less clear.
"Once these clunker rebates expire, it is over," predicted economist Richard Yamarone of Argus Research. "Consumers are not going to keep buying cars. It is a temporary one-time gimmick, not a long-lasting tonic for the recovery."
In the program so far, GM's share of cars sold is largest, accounting for 18.7 percent of new sales. Toyota Motor Corp. followed with 17.9 percent, while Ford had 16 percent. Detroit automakers represented 45.3 percent of the total sales, while Toyota, Honda Motor Co. and Nissan Motor Co., all Japanese firms, totaled 36.5 percent.
Toyota also has the best-selling new model for traders of clunkers, the Corolla. The Ford Focus, Honda Civic, Toyota Prius and Toyota Camry are also favorites. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 mpg. Six of the top-10 selling vehicles are built by foreign manufacturers, but most are built in North America.
Resource: Yahoo News
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