Cash for Clunkers helps Japanese brands most

Cash for Clunkers helps Japanese brands most

Rusty beetle

There’s no question that American President Obama’s Cash-for-Clunkers program has accelerated vehicle sales in the States, a new report has just shown that the big winners were from Japan, not Detroit. A slight back-fire perhaps.

According to the study, nearly 85 percent of the trade-ins were from General Motors, Ford, and Chrysler, yet they only sold 39 percent of the new cars that replaced them. On the Japanese side, 8 percent of the trade-ins came from Toyota, Honda, and Nissan, manufacturers who accounted for 41 percent of the resulting new car purchases.

While these numbers may be justified by the large quantity of inefficient domestic trucks and SUVs that were deemed clunkers, customer loyalty also seems to have seen a shift. About 68 percent of owners who traded in Toyota, Honda, or Nissan vehicles replaced them with another from one of those Japanese brands, while only 43 percent of consumers who traded in Detroit steel purchased another General Motors, Ford, or Chrysler product.

The program reportedly cost the U.S. taxpayers about $3 billion USD. Nice one.

Rusty beetle

There’s no question that American President Obama’s Cash-for-Clunkers program has accelerated vehicle sales in the States, a new report has just shown that the big winners were from Japan, not Detroit. A slight back-fire perhaps.

According to the study, nearly 85 percent of the trade-ins were from General Motors, Ford, and Chrysler, yet they only sold 39 percent of the new cars that replaced them. On the Japanese side, 8 percent of the trade-ins came from Toyota, Honda, and Nissan, manufacturers who accounted for 41 percent of the resulting new car purchases.

While these numbers may be justified by the large quantity of inefficient domestic trucks and SUVs that were deemed clunkers, customer loyalty also seems to have seen a shift. About 68 percent of owners who traded in Toyota, Honda, or Nissan vehicles replaced them with another from one of those Japanese brands, while only 43 percent of consumers who traded in Detroit steel purchased another General Motors, Ford, or Chrysler product.

The program reportedly cost the U.S. taxpayers about $3 billion USD. Nice one.

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