Sign in Subscribe
Automobile industry

Automakers Feel the Effects of Cash for Clunkers Buying Spree

Strategic Insights

— 2 min read

Automakers are now facing the consequences of the government's Cash for Clunkers program, which drew in many customers in July and August and prompted sales of nearly 700,000 new cars and trucks. General Motors Co. reported a 45 percent decline in September sales compared to the same period last year, while Chrysler Group LLC saw a 42 percent drop. However, Hyundai bucked the trend with a 27 percent rise in sales.

Key Takeaways:

  • General Motors Co. reported a 45 percent decline in September sales compared to the same period last year, with 155,679 vehicles sold in September compared to 282,806 in September of last year.
  • Chrysler Group LLC saw a 42 percent drop in September sales, with 62,197 vehicles sold last month compared to 93,222 in August.
  • Hyundai reported a 27 percent rise in September sales, with sales of 27,882 vehicles last month compared to 22,004 in September of last year.
  • The sales decline for General Motors and Chrysler was attributed to the Cash for Clunkers program pulling buyers into July and August, weak consumer confidence, and low inventory levels during September.
  • GM's Vice-President of U.S. Sales, Mark LaNeve, stated that the market returned to pre-Cash for Clunkers levels in September.
  • Ford's top analyst, George Pipas, predicts that the Cash for Clunkers hangover will have minimal effect on sales in October and beyond.
  • Sales of Ford's popular F-series trucks rose 3.5 percent, while sales of the new 2010 Taurus sedan increased more than 60 percent.

Statistics:

  • General Motors Co. sold 155,679 vehicles in September compared to 282,806 in September of last year, representing a 45 percent decline in sales.
  • Chrysler Group LLC sold 62,197 vehicles in September compared to 93,222 in August, representing a 33 percent drop in sales.
  • Hyundai reported a 27 percent rise in sales in September, with 27,882 vehicles sold last month compared to 22,004 in September of last year.
  • Sales of Ford's popular F-series trucks rose 3.5 percent, with 14,172 vehicles sold in September compared to 13,698 in August.
  • Sales of Ford's new 2010 Taurus sedan increased more than 60 percent, with 3,419 vehicles sold in September compared to 2,134 in August.

Sources:

  • "Automakers struggle in September despite strong August sales." Detroit News, October 2009.
  • "General Motors, Ford, Chrysler Report Sales Declines." The Wall Street Journal, October 2009.
  • "Hyundai's sales rise on strong demand for Elantra and Santa Fe models." Automotive News, October 2009.

Read more