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Published on: 7/31/2009
Last Visited: 7/31/2009
Should Congress scrape up the additional funds, it would help auto marketers, albeit to a small degree, said Ed Kim, director, industry analysis at the consultancy AutoPacific.
"It does have the potential to get people thinking about buying vehicles again.
That certainly happened this week," he said.
Car industry sales were off 35 percent during the first half of the year compared to 2008, per reports.
How much of an impact an additional $2 billion will have in reversing this trend remains to be seen.
"I can imagine there will be some lift for the industry, but not a ton," said Kim.
"Perhaps this and the fact that there are signs that an economic recovery is around the corner could ultimately be a part of helping the industry come back to health.
Information about the offer can be found at Cars.gov.
Still, the clunkers program alone can't do it, said Kim: "It will not have a significant impact on overall volume this year which was the intent of the legislation.
And if it receives the influx of cash, Kim said, "then it will basically last for three weeks instead of one."
...
Should Congress scrape up the additional funds, it would help auto marketers, albeit to a small degree, said Ed Kim, director, industry analysis at the consultancy AutoPacific.
"It does have the potential to get people thinking about buying vehicles again.
That certainly happened this week," he said.
Car industry sales were off 35 percent during the first half of the year compared to 2008, per reports.
How much of an impact an additional $2 billion will have in reversing this trend remains to be seen.
"I can imagine there will be some lift for the industry, but not a ton," said Kim.
"Perhaps this and the fact that there are signs that an economic recovery is around the corner could ultimately be a part of helping the industry come back to health.
Information about the offer can be found at Cars.gov.
Still, the clunkers program alone can't do it, said Kim: "It will not have a significant impact on overall volume this year which was the intent of the legislation.
And if it receives the influx of cash, Kim said, "then it will basically last for three weeks instead of one."