Cash for Clunkers a great success

Remember the “Cash for Clunkers” program last year? I know that everyone who is familiar with the program has their own take on whether it was a good idea. According to a new analysis by Maritz Research, an automotive market research company the program was better than even it’s supporters imagined!

From CNN.com:

NEW YORK (CNNMoney.com) — The government’s Cash for Clunkers program resulted in a far bigger boost to car sales than was previously estimated, even by the government, according to a new analysis by Maritz Research, an automotive market research company.

Maritz estimates that a total of 765,000 new vehicles were sold because of the program. Those cars wouldn’t have rolled off dealer lots without the offer, they say.

That’s more than double the Department of Transportation’s estimate of 346,000 sales that wouldn’t otherwise have been made.

Maritz’ estimate of additional new car sales resulting from the program is actually even larger than the total number of vehicles sold under Cash for Clunkers.

Read the full article here.


Photo from fOTOGLIF

  

Fiat will take stake in Chrysler

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Fiat might be throwing Chrysler a lifeline.

Fiat SpA and Chrysler LLC on Tuesday confirmed the Italian auto maker will take at least a 35% stake in Chrysler as part of a deal to share technology and bring small cars developed by Fiat to the U.S.

The move is an attempt to revive two of the world’s storied auto makers and is likely to eventually give Fiat control of Chrysler’s operations, people familiar with the matter said. Under terms of the deal, Fiat has the option of increasing that to as much as 55%, these people said.

Fiat, the stronger of the two car makers, wouldn’t immediately put cash into Chrysler. Instead, it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S., these people said. Fiat would also provide engine and transmission technology to help Chrysler introduce new, fuel-efficient small cars.

The deal is the latest maneuver by Fiat’s chief, Sergio Marchionne, who has pulled the Italian company back from the brink collapse since taking over in 2004.

This might be a great combination. We’ll see how it plays out.

  

Redesigned Ford Taurus a big hit at Detroit Auto Show

When he arrived at Ford several years ago, new CEO Alan Mulally decided it was crazy for Ford to abandon the once-popular “Taurus” brand. He decided quickly to rename the lackluster Ford 500 and bring back the Taurus name.

Now the new Taurus has been introduced at the Detroit Auto Show, and the readers of The Detroit News have chosen the Taurus as “Best of Show” at the auto show. The car looks sweet, and it could provide a great shot in the arm for the struggling American auto industry.

  

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