RKMBs Forums .::Important::. Politics and Current Events Democrat Leaders Want Automaker Bailout

Don't sound to disappointed.

why bail out GM and Chrysler when the foreign automakers building cars in the US would have picked up the slack?

You hate unions.

hey you finally admitted it was a union bailout! youre progressing!

The basams meltdown continues. Guess the wife is once again a single parent for the weekend. That might not be a bad thing either.

The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for "immediate action" to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."

In recent days, auto dealers across the country have been complaining that the reimbursement payments are slow to process. And they said some of their applications were being rejected because of apparent procedural issues. The statistics Sestak cited suggest those complaints are not based on isolated incidents.

Staffing could be one problem. According to sales data summarized by Transportation Department officials, dealers have submitted requests for rebates on 338,659 vehicles sold.

But while Congress just expanded the $1 billion program by $2 billion, the Department of Transportation says a staff of just 225 people is reviewing those claims.

Sestak wrote that he thinks 1,000 processors should be assigned to handle the claims. Sestak, who is challenging Sen. Arlen Specter in his state's Senate primary, wrote that auto dealers have contacted him to express their concern and ask for help.

"Failure to address delays with the cash for clunkers program will adversely harm auto dealers in the commonwealth of Pennsylvania and around the country -- undoubtedly forcing many out of business," he said in a statement.

Under the clunkers program, passenger car owners are eligible for a voucher worth between $3,500 and $4,500 if they trade in their gas guzzlers for new, fuel-efficient vehicles.

Boy, that Cash for Clunkers program really stunk!
August 24,

So where are all the naysayers over the Cash for Clunkers program now that the program is over and has proven to be a win-win for just about everyone.
Reflexively, you'll get your partisan rancor up because many dealers haven't been paid. That the best you can do? You think the government isn't going to pay the dealers for the vouchers?
As of Monday morning, over 625,000 vouchers had been submitted to the government --that's 625-thousand used cars no longer on the road.
Transportation Secretary Ray LaHood says when it's all said and done, as many as 800-thousand cars will have been sold, most of them fuel-efficient.
That's certainly better for the environment, but the program did much more than that.
The sale of 800,000 cars in less than a month's time is a significant shot in the arm for the American economy. For one, it provides much needed tax revenue for cash-strapped states like Michigan (where clunker sales soared).
It generates revenue for one of our principle retailers, auto dealers, who prior to the program had been starving. Thanks to the program, they'll make money, the sellers will make money. The money, in turn, goes back into their business, back into other businesses, stimulating the economy.
Most of the new car buyers bought fuel-efficient models (top 10 sellers), and the money saved on gas, goes back into the economy through other retail expenditures. And don't argue that these buyers are people going into debt to buy a new car with the help of a government program. Unless, of course, you believe banks are still lending money to bad risk borrowers. They're not; those days are over. Anyone getting a loan now is a qualified borrower who has proven the means to manage the debt --ya know, the way banks used to lend out money.
The financial institutions benefit. They make money by lending money, so the loans they provided to qualified borrowers will generate revenue for them, which in turn, stimulates the economy.
Automakers increased production to keep up with demand. Ford said the program pushed them to make an additional 10,000 Focus and Escape models by the end of September. GM, Chrysler and many of the foreign makers re-opened or stepped up production at their plants, extending hours, hiring (or re-hiring) workers.
Ancillary industries no one ever considered all got a boost.
The recycled car parts meant cash for dealers who sold them to body and repair shops, and to salvage yards and auctioneers who, in turn, sold them to their customers. One Atlanta-based auctioneer set up 50 clunker auction sites across the country.
Chemical suppliers were flooded by orders for sodium silicate, the compound dealers used to kill the "clunkers" turned in for "cash." Chemical suppliers, who usually sell about 100 or so gallons of the product a year, were moving thousands of gallons a week.
Newly manufactured cars have to be shipped from the assembly line to the dealership, creating a huge demand for delivery drivers as trucking operations were sent into overdrive.
The Clunker program even gave rednecks somethin' to do program even gave rednecks somethin' to do as creative folks in northern Wisconsin figured out a way to turn junk cars into a good time had by all.
So before lawmakers return to Washington, particularly the Republican Senators who opposed the program predicting that it wouldn't help the economy and that the program was chaotic, let them remind their constituents that they opposed the idea, so constituents can figure out who didn't want to spend government money for the benefit of American citizens.
Has the program been perfect? Of course not. We're learning now that dealership inventories will likely be low for weeks or even months, and it may be difficult to find the car you want in September. Gee, what a problem to have. Guess that means automakers will have to step up production.
Chalk this up for the memory file. Government does plenty of things wrong, but here's something they got right.

I missed where basams pointed out the flaws in my argument. Recognizing that the cash for clunkers helps the auto industry* isn't exactly the same thing as trying to save American owned auto companies.

Plus I thought it was settled that when he made fun of Whomod beating up his family that wasn't attacking Whomod's family but just Whomod and it was ok to do that. Granted I know you have a double standard for me because I'm a liberal but I wasn't even going as far as joking about spousal abuse.

Sorry but I have to find you guilty of first degree hypocrisy.

as for stimulus programs go it seems to be doing what it was supposed to do and even more.

Automakers increased production to keep up with demand....automakers will have to step up production....Government does plenty of things wrong, but here's something they got right.

Yeah, I was watching Rachel Maddow vocally fellate Obama ...

Considering that they hired 3 full time employees WB they must have saw it as a program worth using. The program isn't perfect as the piece I posted yesterday admits but as for stimulus programs go it seems to be doing what it was supposed to do and even more.

General Motors has signed up to a 2bn yuan ($293m; £180m) joint venture with the Chinese state-owned carmaker FAW to make light trucks and vans.

The vehicles will initially be sold in China under the FAW brand, but could in future be exported under the GM brand.

They will be produced at existing FAW facilities in the cities of Changchun and Harbin.

So where are all the naysayers over the Cash for Clunkers program now that the program is over and has proven to be a win-win for just about everyone.
The sale of 800,000 cars in less than a month's time is a significant shot in the arm for the American economy. Automakers increased production to keep up with demand. ...dealership inventories will likely be low for weeks or even months...that means automakers will have to step up production.

Many auto industry analysts and dealers expect sales volumes to fall now that the program is over. They worry that many people who took advantage of the program were merely accelerating purchases they would have made later in the year.

If that's true, the premature sales could hurt automakers, which increased production in the third quarter to replenish clunker-depleted inventories that had already grown low because of factory shutdowns over the summer.

GM, Ford and Chrysler reported September sales declines on Thursday, revealing a tough hangover from this summer's Cash for Clunkers buying spree.

General Motors Co. reported the steepest drop, 45 percent, when compared with September of last year. Chrysler Group LLC was down 42 percent and Ford Motor Co. had a much smaller decline of 5.1 percent.

Automakers got a big lift in July and August from clunkers, which spurred sales of nearly 700,000 new cars and trucks. The government program's big discounts lured in many customers who otherwise would have waited until later in the year to walk into dealerships.

Now automakers are starting to feel the effect. GM said it sold 155,679 vehicles last month compared with 282,806 in September of last year. Ford reported sales of 114,241 in September, but the decline followed two straight months of rising sales. Chrysler sold only 62,197 vehicles last month.

GM blamed the decline on the clunkers program pulling buyers into July and August, weak consumer confidence and low inventory levels during September before production increases could replenish stocks.

"As expected, the market returned to pre-Cash for Clunkers levels in September," Mark LaNeve, GM's vice president of U.S. sales, said in a statement. "Fortunately the fourth quarter looks brighter."

Ford's top analyst told reporters on Thursday he does not think the Cash for Clunkers hangover will affect sales in October and beyond.

"I think most part the payback for the program will be minimal in the coming months," George Pipas said. "I don't think we should be using any excuses. I think from now on the economy stands on its own."

Cash for Clunkers and summertime production cuts kept inventories of popular models low during the month, but even so, Chrysler predicted its market share will rise 0.8 percentage points from August levels. The company increased factory output to replenish supplies.

"While we had some bright spots in September, it was still a challenging sales environment for the industry," Peter Fong, CEO of the Chrysler brand, said in a statement.

Sales of Ford's popular F-series trucks rose 3.5 percent, while sales of the new 2010 Taurus sedan increased more than 60 percent.

Ken Czubay, Ford's vice president of U.S. marketing and sales, said that could be a key indicator that pickup sales are starting to recover among core buyers who need them for work, and it may be an early indicator that small business owners are experiencing a turnaround.

"It's two months in a row of F-series sales increases for us," Czubay told reporters during a conference call. "It's not the large commercial purchases, it's more the individual."

The F-series trucks usually are the top-selling vehicle in the U.S.

The September results fell 37.2 percent from August totals, which were boosted by the government's Cash for Clunkers program. Two of Ford's vehicles — the Focus and Escape — were top sellers in the program that ran during July and August and offered big discounts to buyers.

Sales of the those vehicles posted steep declines from from August to September. Focus fell 64.1 percent from August, when Ford sold 25,547 of the small, fuel efficient cars. The company sold 9,182 in September.

The Escape crossover posted a month-over-month sales decline of 58.5 percent, with Ford selling 8,692 of the vehicles last month, compared to 20,933 August sales.

Chrysler also saw a slowdown between August and September. The company's sales fell by a third to 62,197 from 93,222 in August.

South Korean automaker Hyundai was an exception in September. Its sales jumped 27 percent year over year on easy comparisions to a weak year-ago period and strong demand for its Elantra and Santa Fe models.

Automakers sold a combined 1.3 million vehicles in August for a seasonally adjusted sales rate, or SAAR, of 14.1 million. Many analysts expect a SAAR of 9.3 million for September.

Shares of Ford fell 19 cents, or 2.6 percent, to $7.02 in afternoon trading.

The 2010 Ford Fusion was named Motor Trend magazine's car of the year Tuesday, beating out the Toyota Prius, BMW 7-Series, Chevrolet Camaro and others in the closely watched competition.

It was yet another accolade for Ford Motor Co.'s midsize sedan, which got high reliability scores in the most recent rankings from Consumer Reports and was the top-selling car made by a Detroit automaker through October. U.S. Fusion sales were up 15 percent in the first 10 months of this year, to 148,045, despite a 25 percent drop in overall car sales.

Still, the mid-size Fusion continues to lag behind the Toyota Camry and Honda Accord -- perennial leaders in the competitive U.S. mid-size market.

Motor Trend said the Fusion can compete with the Camry and Accord in performance, comfort and fuel efficiency. It praised Ford for offering several versions of the Fusion, including a fuel-efficient gas-electric hybrid and a sporty version with a V-6 engine.

"Ford has proven its resilience in these tough times by delivering to market a car with broad appeal to a broad range of consumers," Motor Trend Editor in Chief Angus MacKenzie said in a statement.

Motor Trend considered 23 new or significantly refreshed vehicles. The Fusion, introduced in the 2006 model year, was redesigned for 2010 with a new lineup of engines and transmissions, new exterior and interior and new options, including the Sync entertainment system and a blind-spot warning system.

Derrick Kuzak, Ford's group vice president of global product development, said the 2010 Fusion has a sportier look and better fuel economy than previous versions. It gets 34 miles per gallon on the highway when equipped with a four-cylinder engine and six-speed automatic transmission. The gas-electric hybrid version gets 41 miles per gallon in the city.