by Kai Hsing
With the program’s environmental and economic benefits nearly negligible, billions could have been better spent encouraging more people to buy cars that make a real difference – plug-in hybrids.
Much of the discussion around the “cash for clunkers” fervor is as polarizing as the politics involved – you either dismiss the program as a failure in both theory and practice or you declare the program a success while rejecting criticism of the program as GOP firestarting. With further consideration, one realizes that the cash for clunkers program actually has a lot of moving parts to consider before disassembly – unlike what they’ve been doing to the clunkers themselves.
On one level, cash for clunkers could be deemed a success – the program has so far increased sales in its brief period of activity, with Ford posting its first sales increase in two years and the overall industry posting its best month of 2009. The overwhelming popularity of the program has also been lauded as a measure of its success (or irresponsibility), with $1 billion exhausted in $4,500 increments in just one week.
Despite the fact that the Ford Focus (mpg: 24 city/35 highway) has been the top-selling one of the top-selling vehicles among those who traded in their “clunkers” for new cars, a closer look reveals that six out of the 10 best-selling anti-clunkers were from foreign automakers. Read the rest of this entry »