In an effort to combat plunging auto sales, the Russian government is deliberating on a decision to bring back its cash for clunkers program, last seen sending Ladas, Volgas and GAZs to the crusher back in 2010.
So, how would you all like a nice, juicy chunk of political red meat to chew on a lovely Tuesday morning? For those of you who aren’t interested, it’s all below the jump. For the rest of you, 350 comments or bust! Let’s do this…
The fact (if you can call it that) that China’s government will bring back a Cash-for-clunkers program caused headlines around the world. It also spurred news writers to new peaks of creativity. At the same time, Chinese farmers could protect GM’s honor. Let’s investigate. (Read More…)
Letter to the editor of the New Times by Robert Pankhurst:
“On my drive home yesterday, an advertisement over my car radio told me how much the Cancer Society needed old cars donated to help them fight cancer. Then I remembered watching the Youtube video where cars were turned in for the government program called “Cash for Clunkers.” (Read More…)
Edmunds is tracking an $1,800 average increase in the price of used cars, as new-car sales have faltered with the shaky economy. But the increase in prices isn’t solely due to Americans tightening their belts and buying used instead of new. The biggest price increases by nameplate appear to be for large SUVs and vans like the Cadillac Escalade, Chevy Suburban, Dodge Grand Caravan, BMW X5 and Acura MDX. Edmunds senior analyst Joe Spina explains
So many economic factors affect automobile sales and prices. It’s believed that the program delayed purchases prior to the program and also pulled sales forward while in place. The program also eliminated inventory of older vehicles that were traded and then scrapped… Now, those who need trucks and large SUVs are buying them and in many cases are turning to used vehicles as a way to save money. Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.
Edmunds’ “Large SUV” segment shows prices up by nearly $7k per vehicle (over July 2009), compared to increases of less than $500 per vehicle for midsize and compact cars over the same period. Gas prices, meanwhile, are nearly unchanged from July of last year. Clearly something is affecting the price of used SUVs… if it’s not Cash-For-Clunkers, what is it?
I’m afraid our friends over at Gasgoo need a little parental oversight. Or the good folks at China’s premiere auto business site shouldn’t been drinking while posting. Today, they report that the Chinese government invested 5 billion yuan ($736m) in the “cash for clunkers” program last year. As of May 31, only 1.7 billion yuan ($250m) were handed out, with 3.3 billon yuan ($486m) left. No surprise to us. We never thought much of the program. In January, we said: “Due to the relatively young fleet in China, the impact of the cash for clunkers program on sales is expected to be small.” So far so good.
Now for a huge leap of logic:
“Therefore, the country’s automobile consumption in the next seven months will certainly be doubled,” say our friends at Gasgoo.
Shenme? (Say what????) (Read More…)
Anyone still feel like arguing that Cash For Clunkers was a good use of nearly $3b? [Coyoteblog, via Instapundit]
Now that Japan has said kankei nai ne (who cares, not worth the trouble) and opened their cash for clunkers program to American imports, even if they did not go through mandatory homologation, and even if they weren’t rated by the Japanese government to get 35.5 mpg or better, which car is the first to qualify? You are looking at it – very closely. It’s a, it’s a, it’s a … (Read More…)
Today’s Nikkei [sub] clarified the Japanese position on US cars qualifying for Nipponese cash fur clunkers money. The program offers up to 250,000 yen ($2,800) in subsidies to buyers of cars that meet Japanese fuel efficiency standards.
According to the Nikkei, about 30 percent of U.S. imports to Japan enter the country through the “Preferential Handling Procedure,” that does not require them to pass Japanese fuel efficiency tests. These cars, which had been excluded from the program, will now be considered – based on mileage data collected in the U.S. Good luck with that. (Read More…)