Rarely has such a red-taped-ridden federal program received with so much circus-like attention and headline.
One thing for sure is people stampeded into showrooms to trade in an old beater for a check of $3,500 or $4,500 to buy a new and more fuel-efficient car. They flocked in car dealership with strong motivation, ready to deal, after months of vanishing traffic and lackluster sales. A noticeable change in consumer psychology, from fear and uncertainty to opportunity and urgency.
Reducing current inventory to clear the way for new 2010 models, and also generating potential interest and awareness of new products are important for dealers.
Junking out old clunkers should also help used car market as well, since the program essentially eliminates about half a million junkers from old car lots.
A good portion of buyers are college-age with old beat-up gas-guzzler, given to them by parents, now trading in for a smaller and more efficient car.
One particular car-maker that benefits handsomely should be Hyundai Auto. This Korean company was, last year in the middle of the crisis, first to offer customer assurance (a program in which customers could turn a car back into the dealer if they lost their job with no hurt to their credit rating), the marketing champaign was a spectacular success, with huge internet traffic and inquiry. Sales Hyundai continued to climb as the economy spiraled down. It is also important to note that top selling carmaker Toyota will receive about 40% of the fund.
The costs of the program should total around 3 billion dollars, which is just a drop in a bucket, comparing to 780 billion dollar bank bailout package.
The program was intended to reverse waning and pessimistic sentiment. It is now up to the car dealers to fulfill consumer expectations with attractive products. It is a real shot in the arm for not only auto industry, but also for general economy with more optimistic consumer confidence. A surge of interest could spread into other segments and industries, we just have to wait three more months to gage the roll-over effects.
Top selling cars under the program : Toyota Corolla, Ford Focus, Honda Civic, Toyota Prius, Toyota Camry, Hyundai Elantra, Ford Escape,Dodge Caliber, Honda Fit and the Chevrolet Cobalt
Top 10 Trade-ins as clunkers :
1. Ford Explorer (four-wheel drive)
2. Ford F-150 pickup (two-wheel drive)
3. Jeep Grand Cherokee (four-wheel drive)
4. Jeep Cherokee (four-wheel drive)
5. Dodge Caravan/Grand Caravan (two-wheel drive)
6. Ford Explorer (two-wheel drive)
7. Chevrolet Blazer (four-wheel drive)
8. Ford F-150 pickup (four-wheel drive)
9. Chevrolet C1500 pickup (two-wheel drive)
10. Ford Windstar (four-wheel drive)
No comments:
Post a Comment