John McElroy on August 21st, 2009

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THE CLUNKERS PROGRAM EXCEEDED EVERYONE’S EXPECTATIONS

Despite a lot of skepticism from industry analysts, the “Cash for Clunkers” program exceeded just about everyone’s expectations. It brought in new customers, cleaned out a lot of old inventory, and started putting auto workers back to work.

A lot of critics, me included, thought this was just a government giveaway that really wouldn’t have much effect. And while there’s no question it was a giveaway, it did meet the goals of the program: to help reduce America’s dependence on oil and stimulate the economy.

Most impressively, dealers tell me that the Clunkers program brought in customers they had never seen before. They were people who would not normally buy a new car. The only reason they came into the showrooms shopping for new cars was because of the cash they could get for their clunkers. And the dealers are pretty sure they’ll never see most of them ever again.

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John McElroy
is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 21 Aug 2009 18:19:00 EST. Please see our terms for use of feeds.

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