Is it true that Toyota profited the most from the Cash For Clunkers program?
This is being reported widely in the news, consistent with the government's analysis. However, Detroit automotive analyst John McElroy is disputing this, saying that the government counted the types of cars sold by the drive train only, and this is not how the auto industry counts vehicles sold since the same drive train can be used in different cars. They are claiming that the number one selling car in Cash For Clunkers was the Ford Focus, the F150 was number four, and contrary to the DOT report, the Toyota Corolla was actually number five. The audio of the segment is below, and it's very short.
Can you answer Mr. McElroy's question, why the government would make it look like Detroit lost and foreign companies won in the government's own program? Or is the government correct and Detroit automakers wrong?
http://www.wwj.com/topic/play_window.php?audioType=Episode&audioId=3988126
I believe it. Detroit doesn't make enough high quality high mileage cars.
OK, here's a link from the Dept of Transportation: http://www.dot.gov/affairs/2009/dot13309.htm
Wednesday, August 26th, 2009
Dealer Transactions
Number Submitted: 690,114
Dollar Value: $2,877.9M
Top 10 New Vehicles Purchased
1. Toyota Corolla
2. Honda Civic
3. Toyota Camry
4. Ford Focus FWD
5. Hyundai Elantra
6. Nissan Versa
7. Toyota Prius
8. Honda Accord
9. Honda Fit
10. Ford Escape FWD
New Vehicles Manufacturers
Toyota - 19.4%
General Motors - 17.6%
Ford - 14.4%
Honda - 13.0%
Nissan - 8.7%
Hyundai - 7.2%
Chrysler - 6.6%
Kia - 4.3%
Subaru - 2.5%
Mazda - 2.4%
Volkswagen - 2.0%
Suzuki - 0.6%
Mitsubishi - 0.5%
MINI - 0.4%
Smart - 0.2%
Volvo - 0.1%
All Other - <0.1%
Top 10 Trade-in Vehicles
1. Ford Explorer 4WD
2. Ford F150 Pickup 2WD
3. Jeep Grand Cherokee 4WD
4. Ford Explorer 2WD
5. Dodge Caravan/Grand Caravan 2WD
6. Jeep Cherokee 4WD
7. Chevrolet Blazer 4WD
8. Chevrolet C1500 Pickup 2WD
9. Ford F150 Pickup 4WD
10. Ford Windstar FWD Van
I think Mr McElroy will have trouble arguing against these details.
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