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AUTO SALES UPDATE

Cash for Clunkers deal drives auto sales, Ford unveils new Taurus...

Tracie Potts (NBCNC)
August 4, 2009 - 2:08pm

Critics of the wildly popular "Cash for Clunkers" program are attempting to put the brakes on new funding.

In Saint Louis protesters tried to disrupt a congressman's news conference touting the success of the program.

Dealers have already claimed more than half of the billion dollars in government rebates that was supposed to last through October.

Lawmakers have promised another two billion this week.

Chrysler has sold so many cars dealers are running short.

The company has stopped doubling the government rebate.

The government says more than 130,000 Americans have traded gas guzzlers for cars that are, on average, 61 percent more fuel efficient.

The increase will end up saving the typical buyer up to a thousand dollars a year on gas.

Ford, rolling out its new Taurus on Wednesday, said "Cash for Clunkers" could boost the economy as manufacturers make more cars.

"Clearly, this has been a home run," said Ford economist Ellen Hughes-Cromwick.

Still, some are questioning the cost.

"I'm not going to pass a bill onto our kids of two billion dollars to buy a car today," said New Hampshire's Senator Judd Gregg. "That's just not fair to our children to keep doing this to them."

Others are asking if it's fair to just to help automakers.

So far just under half the cars sold in this program came from America's big three.

Some economists think because the cars being sold are the least expensive the program won't have a lasting impact on the economy until the government can create more jobs and boost consumer confidence.


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