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 Car
Sales Up as "Cash for Clunkers" Program Continues
August 4, 2009
Vehicle sales have surged in recent days in light of the new Cash
for Clunkers stimulus program, and several car manufacturers have
recorded sales increases for the month of July.
Ford, Lincoln and Mercury retail sales increased 9 percent over
last July. This is the first year-over-year total sales gain Ford
has recorded since November 2007. Fuel-efficient vehicles were the
company's top sellers, including the Ford Fusion, up 66 percent;
Mercury Milan, up 60 percent; Ford Escape sales increased by 94
percent; Mercury Mariner, 71 percent; Ford Focus, up 44 percent;
and Ford Ranger was up 65 percent.
The company attributes much of this success for the month to its
marketing of the Carl Allowance Rebate System (CARS) program, and
its website, www.letfordrecycleyourride.com,
in particular.
"We had another strong month in progress before the 'Cash for
Clunkers' program started," says Ken Czubay, Ford vice president,
U.S. marketing, sales and service.
"Our products, our dealers and our advance preparation enabled
us to leverage the program and drive traffic and sales to another
level," he adds. "In addition, we achieved a sales increase
even though we decreased incentive spending in an increasingly competitive
environment."
Chrysler sales were up 30 percent over June 2009, and five of the
company's vehicles set monthly sales records during July. Jeep®
Patriot sales were up 134 percent over July 2008; Dodge Caliber
sales were up 63 percent over the previous year; Chrysler PT Cruiser
sales were up 24 percent compared with July 2008; and Mopar®
sales increased 9 percent over the previous month.
Chrysler also attributes the record-breaking sales to the government
stimulus program, which allows consumers to trade in gas-guzzling
vehicles for up to $4,5000 toward a more fuel-efficient vehicle.
"The government's program is doing what it is designed to do-spur
consumers to trade in older gas guzzlers for new, fuel-efficient
vehicles," says Peter Fong, president and chief executive officer-Chrysler
brand and lead executive for the sales organization, Chrysler Group
LLC. "While we don't expect the industry sales forecast to
change dramatically, we are seeing encouraging signs that consumer
confidence is building, and more consumers are considering purchasing
a new vehicle."
On July 27, Chrysler restarted production at nine of its 11 manufacturing
facilities.
And Chrysler and Ford aren't alone in the recent surge. Toyota reported
yesterday that July vehicle sales hit a new monthly high for the
year and jumped 27.7 percent compared to June 2009.
"Beyond the tangible economic stimulus, the positive environmental
benefits of the CARS program is clear to see," says Toyota
president Jim Lentz. "The program is achieving its goal of
increasing fuel efficiency. CARS-related Toyota sales, over the
seven days alone, will save customers an estimated 8 million gallons
of gas and 20 million dollars in gas spending over the next year."
Sales, however, for the company were still down from last July-by
10.8 percent for the Toyota division and 16.5 percent for the Lexus
division.
As of the end of the day yesterday (4 p.m. EST), 20,495 dealers
across the United States had been approved for registration in the
CARS program, and 133,767 transactions had been submitted for a
total of $563.8 million.
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more information on the CARS program.
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