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Auto Sales Stagger In August

September 8, 2010 by  

Auto sales stagger in August A year after the government’s massive spending program, Cash for Clunkers, United States automakers are reporting disappointing sales figures, suggesting that the long term effects of the initiative may be less stimulating than intended.

New vehicle sales for August fell 21 percent compared to last year when Cash for Clunkers was still rolling, according to CNN. The numbers are down 5 percent from July. In total, U.S. automakers sold fewer than 1 million vehicles for the month.

Some commentators have blamed the sluggish economy and slower than expected recovery for consumers’ reluctance to make major purchases.

"Car buying is far from repaired, and consumers hesitate before they make a big ticket purchase," Jesse Toprak, an analyst with the auto pricing site, told the news source. "It shows that the recovery is going to be much slower and more painful than expected."

Auto sales typically pick up in August, as manufacturers offer significant savings on their current inventory in anticipation of the new model year, which begins in the fall. However, sales figures for this past August were the lowest monthly figures in 28 years, according to Bloomberg News.

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  • http://?? Joe H.

    I find it ironic that the picture on an article on poor auto sales is of a Ford, the only one to not take the giverment money and the first to show a profit after the downturn of the big three!!! They don’t have loans to pay back to the giverment, so it will be easier for them in the long run! There were billions given to the other two and they might still go bankrupt!!!

  • s c

    ‘Cash for Clunkers’ is typical of what happens when an ivory tower flunky tries to manipulate the economy. Obummer is obsessed with crippling our economy, and his Detroit Diversion is but the tip of America’s economic iceberg. Is there any nitwit, childish whim that he’s not willing to try?
    Obummer and his Frankenstein chums are so inept that they don’t know what a cattle guard is or how much ‘training’ it takes to be a good cattle guard (duh!). And the Titanic II sails on into dangerous waters – with an overpaid dingbat at the helm. God save us.

    • Jim H.

      With such a high unemployment rate, many people are unsure about having a job in the near future. They won’t risk going into debt, when they aren’t sure. To get out of recession people need to spend, but ironically, if your not sure about your job you won’t risk spending.

      • Claire

        Jim H –You are correct.

      • TIME

        Point taken and a very good point indeed. I have a few friends that own dealerships, and they tell me that they are giving away cars at cost just to move the stock.

        Thats bloody sad, I took our BMW in about two weeks ago for a minor issue, they have let go of 90% of their staff, I didn’t know a single person there.
        Thats the 4th turn over in a year. The Sales dude was sitting in a chair watching TV, and came running over to me when I was looking at a new car sitting on the Show room floor he was begging me to buy anything.

        Even restrurants are empty now and are as well dropping like flys.
        I was in New York City last week and went to one of my fav’s, its closed down.
        Folks that NYC, there are nearly 8 million people that live there and 99% can’t boild water, the only food they make is called
        A Reservation! Whats that tell you?
        I went out to Long Island to visit with a few friends my old Fav out there has closed down too!
        That happened two months ago, folks LI is the summer play ground area for those with extrat $$$$$ so if in the summer Restrurants are closing down, thats makes a statment that things are really bad!

      • 45caliber

        You are quite correct. I need a car – but as long as the one I drive holds out, I’m not going into debt to get a new one as long as I’m nervous about my job and paying the money back!

  • Robin from Arcadia, IN

    Only the liberals will be surprised by this news; then they will wait anxiously for news from Washington about more deals to be had. More tax payer monies to jump start another wave of car buying. What a tangled web they weave!

    • Claire

      Well, I guess I must be a Liberal. Whatever. I sure as hell am still buying my Chevy Impala.

  • FlaJim

    In addition, it’s nearly impossible to find an inexpensive used vehicle any more, thanks to ‘cash for clunkers.’ That’s harmed both those who need them and the used auto sales industry.

  • Mark

    If the gov’t would have stayed out of the automotive industry back in the 60′s our own American autos would be at the forefront. But like anything they touch, it becomes a shambles.

    • 45caliber

      I agree. In fact, that is one of the main reasons our cars get actually poorer milage than they did back then.

  • Bob

    People are tired odf dealing with sleazy car salesmen.

  • Al Duhan New Milford, Ct. 06776

    It’s a little upsetting when they show a FORD in this photo. Ford was the only American auto Dealer that stayed solvent and refused any government intervention. Their projection was much higher then previous years. It was G M that lost most of the sales even after Our Government spent billions on advertisement, and the largest in cash for clunkers. Why can’t this government be honest and give credit where deserved. Last year I purchased a Ford Ranger X L 4wd and are extremely satisfied. Fords Built Tough!!!!


      Yup. Buy a Ford.

  • http://gmail i41

    Idoit in agencies and the beltway don’t have a damn clue why it will take, a least a yeart with everyone working before people start spending. But with finanical reform it will, stop businesses and small businesses to be taking off, because of the uncertainay of costs coming by undisclosed costs. Dems have really went off to embracing socialism and total marxism. Everyone is really made because there is not a reasonable priced used vehicle, crushing and sending the metal to China was real smart, can the American people say dumbazzes in the beltway, thanks to the marxist muslim moron and his tag along democrat smucks.

    • 45caliber

      For a small business to even get started these days, the first two people the owner MUST hire is a safety expert and an enviornmental expert. Those will cost him thousands of dollars before he can even start to do anything else. And it is all government mandated.

  • http://Yahoo! Tony Tou

    The photo shown is the Ford Mondeo of England. Nice car, diesel power, reliable.
    Can we have cars that look nice, and reliable, better yet…diesel too? People everywhere are doing a great job of managing their lives. But we need OhMama and the dumbocraps in the beltway to tell us how to run our lives. Everybody MUST have health insurance, or get a find. But does everyone have a valid citizenship ID and work as an American and pay taxes like us? What are wrong with this picture?

  • Sean

    The cash for clunkers hurt the lower middle class. The clunker cars that were traded in were all sent to the junk yards. And the engines were distroyed.Which caused the price of used engines to go up. IT also caused the price of used cars to go up. The clunker bill took thousands of good used cars off the market. I went to some of these junkyards and saw these clunker trade in cars wow. I would have liked one of them for my self. The government keeps doing this type of program. I will be without transportation !

  • chuck b

    apparently no one paid any attention to abc news about a week ago, they reported dealers were short of used cars due to the cash for clunkers sale and they are seeking cars to resale!, leave it to abc the biggest
    liber propaganda machine in the world and all for barry soetoro.

    • Bob

      Most used cars are sold overseas.

  • Les

    This is so easy to fix, simply mandate everyone buys an American made automobile. It was simple enough to fix healthcare that way, why not apply it to the American automobile industry too. I’m quite sure this solution would make the UAW happy.

  • http://gmail i41

    Better yet make every Congressperson and Onumnutts and Big Mammee walk or swim when the go on vacation, or start wasting money for junkets. Also only let the smucks use on battery powered matchboxes with doll buggy wheels. The simple minded greenies can pedal their trikes to a from work or to the exercise spas. Cures the exercise problem and the fat gut.

  • Uwe Bartels

    I would like to point out that the Ford modell shown here is a Mondeo with steering on the right and English registration. The european branch of Ford, like the US-company, never asked for direct subsidies (contrary to GM / Opel / Vauxhall / Saab). I was personally opposed to the direct and indirect subsidies, the later being called cash for clunkers in the US. The number of cars being sold was simply shifted from the near future to the period when sales were subsidised and now the sales dropped. The government of Germany waisted 5 Billion Euro on this program. As any government, they did not take it from the taxpayers (for they are voters) but stole it from future generations via deficit spending.

    Keynes may have been right in his analysis but politicians fail to understand that deficit spending is only justified in extreme situations and must be compensated over a short period.


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