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Posted by F. George McDuffee on August 26, 2009, 2:10 pm
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690,114 new vehicle sales generated ain't bad.
Only problem is that the majority of the new vehicles sold appear
to be foreign made, but the fuel economy did increase by quite a
bit. "The average fuel efficiency of new vehicles purchased was
24.9 miles per gallon, an increase of 58% over the average
mileage of the vehicles traded in."
http://www.latimes.com/business/la-fi-clunkers27-2009aug27,0,2161518.story?track=rss
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).
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Posted by Buerste on August 26, 2009, 6:24 pm
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> 690,114 new vehicle sales generated ain't bad.
>
> Only problem is that the majority of the new vehicles sold appear
> to be foreign made, but the fuel economy did increase by quite a
> bit. "The average fuel efficiency of new vehicles purchased was
> 24.9 miles per gallon, an increase of 58% over the average
> mileage of the vehicles traded in."
>
Wouldn't most of the buyers have bought anyway, even if later? Won't the
market be saturated temporarily? Won't the workers recalled be out of work
again? Who paid the billions? I think the idea could have been better
implemented.
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Posted by John R. Carroll on August 26, 2009, 7:53 pm
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Buerste wrote:
>> 690,114 new vehicle sales generated ain't bad.
>>
>> Only problem is that the majority of the new vehicles sold appear
>> to be foreign made, but the fuel economy did increase by quite a
>> bit. "The average fuel efficiency of new vehicles purchased was
>> 24.9 miles per gallon, an increase of 58% over the average
>> mileage of the vehicles traded in."
>>
>
> Wouldn't most of the buyers have bought anyway, even if later?
No Tom, they wouldn't have.
Most of these cars were purchased by people that would have just fixed what
they had.
That is just a fact.
>Won't
> the market be saturated temporarily?
No, you wouldn't saturate a 400 billion dollar per year market with these
sales.
You know this.
>Won't the workers recalled be
> out of work again? Who paid the billions? I think the idea could
> have been better implemented.
How?
--
John R. Carroll
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Posted by Anthony on August 26, 2009, 8:11 pm
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>>Won't the workers recalled be
>> out of work again? Who paid the billions? I think the idea could
>> have been better implemented.
>
> How?
>
With sales of 700,000 in less than 1 month, the pipelines are empty. There is
no inventory left to speak of, of the most popular vehicles of the program.
It will take at least 2-3 months to get inventory levels back to where they
should be. This will provide a buffer of the manufacturing section for the
next month or two when sales will be back to or slightly less than pre CARS.
Almost everyone in the market projection business sees a very slight upturn
in sales in the 4th quarter, with steadily increasing, abiet slowly, sales
into and through next year and 2011.
What this did was keep a bunch of suppliers from going bankrupt and even more
jobs hitting the block. There were a bunch on the verge...thousands of
them...mostly caused by cash flow issues.
Suppliers are in a real fix, in that now with all the previous cuts in volume
and inventories, demand was coming back even before CARS, but since the
automakers don't pay but every 45-90 days, they have to "front" all those
parts with no cash coming in to pay bills with. There is a huge amount of
cash flow tied up in parts awaiting payment.
--
Anthony
You can't 'idiot proof' anything....every time you try, they just make better
idiots.
Remove sp to reply via email
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Posted by F. George McDuffee on August 26, 2009, 8:00 pm
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On Wed, 26 Aug 2009 18:24:06 -0400, "Buerste"
>
>> 690,114 new vehicle sales generated ain't bad.
>>
>> Only problem is that the majority of the new vehicles sold appear
>> to be foreign made, but the fuel economy did increase by quite a
>> bit. "The average fuel efficiency of new vehicles purchased was
>> 24.9 miles per gallon, an increase of 58% over the average
>> mileage of the vehicles traded in."
>>
>
>Wouldn't most of the buyers have bought anyway, even if later? Won't the
>market be saturated temporarily? Won't the workers recalled be out of work
>again? Who paid the billions? I think the idea could have been better
>implemented.
>
Indeed, and in a perfect [or even a "pretty good"] world the
directors, executives, officers, CEO, CFO, banksters etc.
responsible for the collapse of the domestic US automotive
manufacturing [and other] sectors would be arrested, water
boarded until they told where the money went (and who got it),
and then publicly executed, after all their assets were
confiscated as the proceeds of ongoing criminal enterprise.
This ain't gonna happen....
Undoubtedly the CfC program could have been better implemented,
but a well proven engineering maxim states "the better is the
enemy of the good, and perfection is the mortal enemy of them
both."
While it is difficult to project, it appears the reduction in the
amount of foreign exchange needed for imported petroleum for the
new fuel efficient vehicles, over their service life, will result
in considerable cost avoidance, and reduction in the current
account trade deficit.
Given both the "high value added" and the high economic
multiplier of vehicle manufacturing, the limited amount of "Cash
for Clunkers" [ONLY!!! three billion$], was most likely a good
one-time shot of stimulant joy juice.
Now if we can just keep Detroit and Congress from doing a Michael
Jackson....
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).
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>
> Only problem is that the majority of the new vehicles sold appear
> to be foreign made, but the fuel economy did increase by quite a
> bit. "The average fuel efficiency of new vehicles purchased was
> 24.9 miles per gallon, an increase of 58% over the average
> mileage of the vehicles traded in."
>