Popular US Cash for Clunkers scheme comes to an end

| September 2, 2009 | 0 Comments

The US Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme has boosted car sales with Ford reporting a 17% rise in sales in August compared with July.

General Motors (GM) said sales had soared by 30% from July this year but did report a 20% drop in year-on-year sales.

Overall, total industry sales rose 1% during August, compared with the same month last year and rose 26% compared with July.

The popular scheme, which was designed to help bring the US economy out of recession by boosting new car sales, gives car owners federal subsidies of up to $4,500 (£2,600) for trading in their old cars for new ones.

Similar schemes have been introduced in Europe. In the UK, the scrappage scheme, dubbed the “bangers for cash” scheme is also proving to be successful.

However, the scheme in the US has now ended with some analysts concerned that the scheme has ended too early.

The US, President Barack Obama recently said the “Cash for clunkers scheme has been a proven success.”

It has also boosted the US car industry with new jobs, while removing polluting cars from the road.

The scheme has also meant that GM and Chrysler are recovering after a difficult year, after emerging from bankruptcy protection.

Tags: , cash for clunkers, Chrysler, Ford, GM,

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