Thaindian News

Washington, Sep 2 (DPA) The US government’s popular cash-for-clunkers programme boosted car sales in August, but sales dropped sharply in the last week of the month as the scheme ended.
On Tuesday, Ford Motor Co. reported that sales rose 17 percent in August, compared to August 2008, its biggest jump in sales in four years.

Toyota USA Inc. reported a 6.4-percent increase in sales, from the same period last year.

However, Chrysler Group LLC. reported a 15-percent drop in sales from a year ago, but this was still better than analysts’ projections. Chrysler’s sales were 5-percent higher than they were in July.

General Motors said August sales were down 20 percent, as compared to August 2008, but up 30 percent from July.

“We believe the programme was a strong shot in the arm for the economy and that our four core brands - Chevrolet, GMC, Buick and Cadillac - are well positioned … to take advantage of the ongoing recovery in the market,” GM’s vice president for US sales Mark LaNeve said.

The cash-for-clunkers programme, modelled after a similar German plan, ended Aug 25, less than one month after being officially launched because money was already running out.

Dealers, manufacturers and the government were overwhelmed by demand for the $3-billion programme, which gave customers up to $4,500 to trade in their old petrol guzzlers for a new and cleaner alternative. It was meant to run until 2010.

According to the Transportation Department, 700,000 cars were sold through the programme, with the top five picks choices being the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus FWD. Rebate applications worth $2.87 billion were submitted.

US car giants Ford and GM had announced production increases for the third and fourth quarters as a result of the demand generated by the programme.