With the Cash for Clunkers program officially deceased, results indicate that the biggest winners in the program’s aftermath were Japanese and Korean automakers. As the Detroit Big Three suffered from bankruptcy and negative consumer perceptions, it seems that a potential $4,500 rebate wasn’t enough to make help GM or Chrysler gain any market share.
Automakers that found the Cash for Clunkers program particularly beneficial were Toyota, Honda, Nissan, and Hyundai as they were able to draw customers away from gas guzzling SUVs and trucks and towards their fuel efficient offerings.
Import manufactures dominated U.S. sales through the duration of the Cash for Clunkers program, which helped drive customers in to showrooms across the country including Nissan O’Fallon. Additionally, cars naturally outsold trucks by a margin of 2 to 1. Out of the Big Three, Ford was the only manufacturer to hold market share during this period, thanks to demand for the Ford Escape compact crossover and the Ford Focus compact.
General Motors and Chrysler both lost ground to import automakers. Initially, the program spurred demand for new domestic models among 2009 Dodge Challenger Dallas dealers. During these initial weeks of the program, compact vehicles and sedans saw strong sales among Cleveland Chevy Cobalt dealers, but poor inventory availability at numerous dealerships hampered sales momentum.
Total auto sales under the Cash for Clunkers program came just shy of 700,000 units. Total rebates came in at $2.87 billion. The rest of the program’s $3 billion will be used for administrated costs. Toyota was the big winner during the Cash for Clunkers program with a reported 19.4 percent market share, with Honda coming in at 13 percent. Chrysler experienced a substantial hit due to dwindling inventories stemming from halted manufacturing operations as well as a lineup saturated by trucks and SUVs. Thanks to robust warranties and unique incentives, Manchester Hyundai saw a healthy spike in first-time Hyundai buyers as well. Despite the program’s ability to spark interest in new cars, Used Cars MA still witnessed healthy demand for affordable late model pre-owned vehicles and expects that demand to only increase in the aftermath of Cash for Clunkers.
Certainly the Cash for Clunkers program created new customers for Japanese and Korean brands. It will be interesting to see whether they will be able to retain these new customers as the Big Three attempt to regain lost ground. Continue reading ‘Japanese, Korean Automakers Benefit From Cash For Clunkers’
