Cash for Clunkers, or CARS, has been a resounding success so far. The first $1 billion allocated for the program was exasperated in the first week, and congress has since approved another $2 billion to keep the vouchers flowing. As expected, manufacturers have seen increased sales for the first time in months. That means dealers have been swapping hold, fuel-thirsty vehicles for new green machines.
Some manufacturers have seen more success than others, and Ford has moved to increase production at a few of its plants in response. The Blue Oval has increased working hours at its Wayne, Michigan plant. That particular location is responsible for building the Ford Focus, a car that’s been a favorite among Cash for Clunkers participators. General Motors is taking a more careful stance on upping production, but foreign competitor Toyota has started cranking out extra Corollas and Camrys – two models that have been particularly successful with the help of the CARS program.
While critics of the program have insisted Cash for Clunkers would do little to stimulate the economy its clear manufacturers everywhere are stepping up production to meet increased demand. More production means more work for company employees. Sure sounds like stimulus to us. [Source: AP]
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