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U.S. auto sales improved substantially in August due mainly to the Cash for Clunkers Program. Overall auto sales for August were up 1% over August of 2008. This is the first month that sales have exceeded 2008 numbers.
It appears that the Japanese and Korean companies have benefited most from the Cash for Clunkers program. Meanwhile sales of luxury cars are still in the dumps with sales down by 30% over last August.
Ford is the American manufacturer sales winner with a 17% increase in sales over last year. GM sales were down 20%, meanwhile Chrysler sales were down only 15%.
- Kia up 60%
- Subaru up 52%
- Hyundai up 47%
- Volvo up 25%
- Ford up 17%
- Mazda up 12%
- Volkswagen up 11%
- Honda up 10%
- Porsche up 9%
- Toyota up 6.4%
- Nissan down 3%
- Mercedes down 8%
- Chrysler down 15%
- General Motors down 20%
- BMW down 25%
- Mitsubishi down 26%
- Jaguar down 33%
- Saab down 68%
Ford seems to be the beneficiary of increased sales lately. It appears that the GM and Chrysler bankruptcies have sent a number of customers over to Ford. The following Ford models had material increases in sales Fusion up 132%, Focus up 56%, and the Escape was up 50%.
Other notable increases were posted by the Toyota Prius up 40%, Toyota RAV4 up 42%, Honda Civic up 44% Honda CR-V up 52%, Hyundai Elantra up 116% Nissan Versa up 131%, and the Nissan Sentra up 78%.
August sales were up at a great run rate of 15 million cars annually. So, it appears that consumers had more faith in the future to spend money on high ticket items.
SUMMARY:
This month the Cash For Clunkers program had a substantial impact on auto showroom traffic and sales. The Cash for Clunkers Program may have borrowed sales from future months. We will have to see what the next several months bring.
An interesting trend appears to be developing! Sales of U.S. built cars, both by domestic and foreign manufacturers, appears to be increasing. Even though Toyota sales increased 6%, sales of their domestic built cars increased by 52% meanwhile sales of their imported cars dropped 16%.
U.S. auto sales appear to be improving substantially in July. Overall auto sales for July were down only 12% percent, with June down 28% and May down 39%. So, it appears that the sales trend is improving substantially.
It appears that the U.S. based automakers and some foreign manufacturers are having a rebound in sales....helped by the Cash For Clunkers program. Meanwhile sales of luxury cars are still in the dumps. ales were the best they have been since the summer of 2008....with a annual run rate of over 10 million cars.
Ford is the sales winner with a 2% increase in sales over last year. GM sales were down 19%, meanwhile Chrysler sales were down only 9.4%. An interesting fact is that GM and Chrysler sales were not impacted by the bankruptcies as much as anticipated.
Ford seems to be the beneficiary of increased sales lately. It appears that the GM and Chrysler bankruptcies have sent a number of customers over to Ford. The following Ford models had material increases in sales Focus up 44%, Escape up 94%, and the Fusion was up 66%.
Other notable increases were posted by the Toyota Prius up 30%, Toyota RAV4 up 33%, Hyundai Elantra up 30% and the Volkswagon Jetta up 31%.
July sales were up at a fairly decent run rate of 11 million cars annually. So, it appears that consumers had more faith in the future to spend money on high ticket items.
SUMMARY:
This month the Cash For Clunkers program had a substantial impact on auto showroom traffic and sales. Unfortunately, the government implemented a half way program. Increasing sales for the automobile manufacturers would do more than all the government loans available.
An interesting anomaly is that sales of U.S. built cars both by domestic and foreign manufacturers appears to be increasing. Meanwhile imported luxury cars continue with the steep declines over last year.
This is hot off the news....the government plans to suspend temporarily the Cash For Clunkers Program. The program offers $3500 to $4500 for trading in an older vehicle for a new more fuel efficient vehicle. The plan does require that only certain vehicles qualify for the program.
Apparently, it is so popular that they are concerned about exceeding the $1 billion dollars earmarked for the project. The plan would have applied to approximately 250,000 vehicles. Thru Wednesday 22,782 vehicles had been purchased thru the program.....with an estimated 25,000 deals had not yet been approved by the National Highway Transportation Safety Agency.
Members of congress from the auto producing states have approached the congressional leaders about extending the program. Rep. Candice Miller, R-Michigan indicated that "This is simple the most stimulative $1 billion the federal government has spend during the entire economic downturn".
SUMMARY:
As I outlined in my previous post this could be a great program for the auto manufacturers, dealers and the consumers that were able to take advantage of the program. Last month, over 850,000 cars were sold for the month. This program would apply to about ten percent of the sales over the three months of the program.
So, the government was serious about stimulating auto sales they would substantially increase the program. The small amount of one billion dollars is going to increase sales temporarily but will have no impact in the long term.
Update: The House of Representatives have approved an additional $2 billion in funding on July 31st to continue program. But, the Senate is holding back approval. The continuation of the program depends on that vote.
