Year-to-date sales for August 2010 may look poor, but the numbers are actually much closer to reality now that the Cash for Clunkers scheme has wrapped up. Cash for Clunkers, which offered rebates ranging from $3,000-$4,000 on the purchase of a new car and trade-in of a used car, sent sales skyrocketing in 2009, and the best indication of this is how far down they are in August 2010. The numbers are also a good look at what consumer spending is really like in the absence of government stimulus money.

Suzuki saw the biggest drop in sales, with a 68% drop, followed by Mitsubishi at 37 % and Toyota down 34%. Porsche led the industry with a 33% increase, which makes sense considering the apparently strong economy of 2010 versus the much more unstable 2009. Maserati and Jaguar Land Rover were both up 25%, while Chrysler was the only volume manufacturer to post any gains, with sales up 7%.

[Source: Automotive News]

The United States Federal Government’s cynical Keynesian vehicle scrappage program scheme was by all accounts a success (if you believe that blind consumption is a win), but some dealers apparently skirted the rules, and now the government is looking for dealers who may have gamed the system – and may withhold $94 million in rebates because of it.

Dealers have already paid out $71,500 in fines, despite NHTSA calling the shady establishments a minority of participating dealerships. However, some shady claims are still being investigating. Among them,

1. The overseas exportation of vehicles claimed to have been destroyed after trade-in
2. $878,000 in “improper payments” which were subsequently returned
3. Several junkyards maintaining improper paperwork that makes it impossible for government officials to verify vehicle trade-ins

While NHTSA says that most of the dealers are legitimate, but noted that some fines have been as large as $21,000. The government may withhold the $94 million in rebates due to missing paperwork that validates the trade-ins. This figure is expected to make up about 3.3% of all trade-ins.

[Source: USA Today]

As expected, auto industry sales were way down for the month of September, after record highs posted during the previous month with the Cash for Clunkers program in effect.

Compared to September of 2008, GM’s sales declined 45 percent, while Chrysler dropped 42 percent. Ford’s posted just a modest 5 percent loss due in part to steady gains in the truck segment, with F-150 pickups (pictured above) selling at an increased pace.

As for the high-volume foreign automakers, Honda dropped 20 percent, Toyota was down 13 percent and Nissan slumped by 7 percent. And with some automakers losing ground, others were sure to grab market share with Hyundai/Kia up 26 percent (its third straight monthly gain), while Porsche rose 8 percent, BMW was up 4 percent and Subaru posted a 1 percent increase.

The loses for September are actually worse than they sound, as the month they are being compared to, September of 2008, was a brutal month for auto industry sales, after the collapse of Lehman Brothers started the recession watch.

Overall, the industry wide decline is listed at 23 percent for September, slightly better than the average 28 percent drop for the previous eight months.

Industry analysts expect these slumping sales to continue through the rest of 2009.

For a full breakdown of each automaker’s sales in September, see after the jump:

[Source: Automotive News]

When the U.S. government first released its list of the most popular Cash for Clunkers vehicles traded in as well as those purchased there seemed to be no surprises. It looked like consumers were getting rid of their Ford Explorers for Priuses. But after taking a longer look at the data, it seems that might not have been the case after all, as two trucks, the Ford F-150 and Chevrolet Silverado, were actually among the top ten vehicles purchased under the Clunkers program.

The reason for the change is that the initial listing classified vehicles specific to their drivetrain, meaning that a rear-drive or four-wheel drive pickup would count as two separate trucks. But by looking at just the vehicle model, the Silverado takes now takes the 8th spot, while Ford’s F-150 sits in 10th. Another winner was the Honda CR-V, which moved from outside the top 10 to sixth place.

As a result, three vehicles that are no longer in the top 10 are the Honda Accord, the tiny Honda Fit and (gasp!) the Toyota Prius.

These new numbers suggest that the Obama Administration’s plan to promote the sale of fuel-efficient vehicles might not have worked as effectively as planned, with the average fuel-economy of the new vehicles rated at 19 mpg, as compared to an average of 35 mpg for the three vehicles dropped from the list. No one can argue that the CARS legislation did, however, give a significant boost to the auto industry – if only temporarily.

[Source: LeftLaneNews]

The U.S. auto industry showed continued improvement in the month of August, helped on by the Obama Administration’s Cash for Clunkers program.

Ford was once again a big winner as sales increased 17.2 percent over last August, a significant improvement over the 2.4 percent growth in July – which was thought to be good at the time.

Honda posted a 9.9 percent increase while Toyota pulled itself from the gutters with a 6.4 percent gain.

Unfortunately for GM and Chrysler, the turnaround seems to have left them behind, with GM slipping 20.1 percent and Chrysler dropping 15.4 percent. Both of those numbers are worse than in July, with GM dropping 19.4 percent and Chrysler dropping 9.4 percent then.

Two smaller players in the U.S. market that are now poised to become larger players are Hyundai and Subaru. Hyundai saw an increase of 47 percent, while Subaru posted 51.5 percent growth. Volkswagen also posted growth of 11.4 percent.

Current estimates now put the total number of vehicle sales for 2009 at the 14.4 million mark, a significant increase from the sub-10 million units forecasted during the height of the recession.

[Source: Automotive News]

See the full U.S. Auto Industry August Sales Results after the jump:

With the Cash-for-Clunkers program officially ending last night, the U.S. Department of Transportation has now released its top 10 list of the most purchased vehicles under the program, with the most popular car purchased being the Toyota Corolla.

Toyotas actually took three of the top 10 spots, with the Camry placing third and the new Prius ranking seventh. Honda did equally well, taking three of the top 10 spots, with the Civic coming in second, the Accord 8th and the Fit 9th.

Nissan and Hyundai each had one spot on the list with the Versa in 6th and the Elantra in 5th. Ford was the only U.S. automaker to break into the top 10, with the front-wheel drive Focus in 4th and the FWD Escape in 10th.

The “Top 10″ list doesn’t tell the whole story, however. While no General Motors products are listed in the top 10, collectively, GM products accounted for 17.6% of the total of new cars purchased under the program, second only to Toyota with 19.4%.

In total, the Car Allowance Rebate System (CARS) generated 690,114 transactions worth a total of $2.8 billion.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment. This is one of the best economic news stories we’ve seen and I’m proud we were able to give consumers a helping hand.”

In total, 84 percent of consumers traded in trucks, while 59 percent purchased cars. The average fuel economy of a car traded in was 15.8 mpg, whereas the average fuel economy of a car purchased was 24.9 mpg – an improvement of 9.2 mpg or 58 percent.

[Source: Department of Transportation]

The four-wheel-drive Ford Explorer topped the list of clunkers traded in under the Car Allowance Rebate System.

Ford vehicles appeared five times on the Cash for Clunkers top ten trade-in vehicles list released by the U.S. Department of Transportation. The four-wheel-drive Explorer was number one with the two-wheel-drive version at number four.

The Ford F150 also appeared twice on the list, with the 2WD pickup at number two and the 4WD F-150 at number nine.

Chrysler vehicles appeared on the list three times, thanks to the Jeep Grand Cherokee (#3), Jeep Cherokee (#6) and the Dodge Caravan/Grand Caravan (#5).

A pair of Chevys filled out the top ten with the Blazer at seven followed by the 1500 pickup at eight.

According to the DOT, 84% of trade-ins were trucks. The clunkers traded in under the program had an average fuel economy of 15.8 mpg compared to the 24.9 mpg average for new vehicles purchased.

[Source: DOT]

The Cash for Clunkers program has come to an end and its impact can now be evaluated.

According to U.S. Department of Transportation, dealers submitted 690,114 transactions under the Car Allowance Rebate System (CARS), more commonly known as Cash-for-Clunkers. Those rebate applications account for $2.877 billion out of the $3 billion approved by Congress.

That number may rise considerably, however, as rejected filings are resubmitted. The DOT has said that filings approved after last nights deadline will be reimbursed. The DOT reported several issues with its servers approaching the deadline, which may account the fact that only $229 million in claims were filed during the last 36 hours of the program, while over the previous weekend $611 million in claims were filed.

A preliminary analysis by the White House Council of Economic Advisers says the CARS program boosted economic growth in the third quarter of 2009 by 0.3-0.4 percent, will help sustain an increased fourth quarter GDP and create or save 42,000 jobs in the second half of 2009.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” says U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”

Ford and General Motors recently announced production increases for the second half of the year due to the demand generated by the CARS program. Honda also said it will increase production at its plants in East Liberty and Marysville, Ohio, and in Lincoln, Ala.

“This is one of the best economic news stories we’ve seen and I’m proud we were able to give consumers a helping hand,” said LaHood.

[Source: DOT and Automotive News]

U.S. Transportation Secretary Ray LaHood said the Car Allowance Rebate System (CARS), offering incentives for trade-ins, should have enough funding to support one more weekend of sales. Earlier this month, the U.S. government pumped $2 billion into the program on top of the original $1 billion in funding. At the time, LaHood estimated the total $3 billion in funding would last until Labor Day. Looks like LaHood was off by a couple of weeks.

LaHood said there are no plans to expand the program again, but some representatives, including Democrat Sander Levin or Royal Oak, Mich.,  say Congress should add another $1 billion into the program.

[Source: The Detroit News]

The National Automobile Dealers Association (NADA) has asked the U.S. government to suspend the Cash-for-Clunkers program immediately as it believes the $3 billion in earmarked funds have already been used up.

NADA Chairman John McEleney told Automotive News that based on a survey of its dealers it believes the $3 billion in funding could be used up as of today. But according to the Transportation Department, only 411,624 claims have been filed, accounting for a total of $1,72 billion. The difference says McEleny is due to rejected claims that have yet to be re-submittted.

Transportation Secretary Ray LaHood, has said that the $3 billion should last until Labor day, but NADA’s track record is also pretty good, as the group was the one to raise the alarm that the initial $1 billion in funding, intended to run for several months had dried up in just two weeks.

Earlier in the week LaHood said that the Transportation Department is readying a plan to wind-down the Cash-for-Clunkers program, commenting that even if the fund dries up, the dealers will still be reimbursed.

[Source: Automotive News]

In the absence of any real movement by the Canadian government to establish a cash-for-clunkers program like the one that is currently boosting auto sales in the U.S., Hyundai Canada has just announced its own incentive program to get older, less-environmentally responsible cars off the road and get you into a Hyundai.

Currently through the Canadian government’s Retire Your Ride program, those who scrap their car are offered “green” incentives like a public transit pass, a membership to a car sharing program or a $300 cash rebate on the purchase of a 2004 or newer vehicle. That’s hardly as enticing as the $4,500 (almost $5,000 CDN) the U.S. government has on the table to get people in to more fuel-efficient cars.

Hyundai’s Clean Air Commitment acts as a top-up to the Canadian government’s program, and offers an additional $500 to $1,000 of “Clean Air Cash” off any 1995 and older vehicle that is in running condition and has been registered and insured for the last six months.

“Hyundai is committed to clean air in Canada,” said Steve Kelleher, president and CEO, Hyundai Auto Canada Corp. “Our Clean Air Commitment is about our responsibility to deliver a harmonious balance between vehicles and the environment; it’s about clean air now and for the future. Reducing vehicle emissions has a direct impact on the air we breathe, so helping to remove older, more-polluting vehicles from the road just makes sense. It’s something we can do today to immediately impact our environment.  We think that’s pretty smart.”

Currently Hyundai is committed to becoming an environmentally-responsible leader it he auto industry and has set a goal of reaching a fleet average of 35 mpg (6.7 liters per 100km) by 2015 – five years ahead of what will be required by upcoming U.S. and Canadian legislation. Hyundai also plans to bring a hybrid version of the upcoming next-generation Sonata to market using the company’s lithium polymer battery technology.

Official release after the jump:

HYUNDAI CANADA UNVEILS INDUSTRY-LEADING CLEAN AIR COMMITMENT

FIRST CAR COMPANY IN CANADA TO TOP-UP GOVERNMENT VEHICLE SCRAPPAGE
PROGRAM

Markham, Ontario, August 19, 2009 – As part of its environmental goal
to help clean the air we breathe today and into the future, Hyundai Auto
Canada Corp. today announced the Clean Air Commitment – a financial
top-up of up to $1,000 on the federal government’s scrappage program
whose aim is to get the oldest, worst-polluting vehicles off the road
and encourage Canadians to select more sustainable transportation
alternatives.  While programs such as this are gaining prominence for
their effectiveness worldwide, Hyundai is the first auto manufacturer in
Canada to launch such a top-up program.

“Hyundai is committed to clean air in Canada,” said Steve Kelleher,
president and CEO, Hyundai Auto Canada Corp. “Our Clean Air Commitment
is about our responsibility to deliver a harmonious balance between
vehicles and the environment; it’s about clean air now and for the
future.  Reducing vehicle emissions has a direct impact on the air we
breathe, so helping to remove older, more-polluting vehicles from the
road just makes sense.  It’s something we can do today to immediately
impact our environment.  We think that’s pretty smart.”

“Worldwide, we’re seeing car manufacturers and governments working
together to reduce harmful emissions to clean up the air we breathe,”
said Peter Corbyn, president and co-founder of Green Nexxus.  “Hyundai
has taken a leadership role in this arena.  We hope other car
manufacturers will follow suit and do their part to help get more
fuel-efficient vehicles on the road.”

Depending on the vehicle, Hyundai’s Clean Air Commitment offers
between $500 to $1,000 of additional savings to top up the incentives
available through the federal government’s Retire Your Ride program,
which offers $300 for qualifying vehicles as well as other incentives
towards sustainable transportation.  This “Clean Air Cash” is
applied to the purchase of a new, more fuel-efficient Hyundai, and is in
addition to the company’s current incentive programs.

“With Hyundai topping up all government incentives, we hope to
encourage a significant removal of old, polluting vehicles from our
roads,” said Kelleher.  “And because our Clean Air Cash incentive is
combinable with our existing consumer offer – the Hyundai Smart
Advantage – we’re making it even easier for Canadians to get into a
new, less-polluting vehicle.”

Hyundai has a stated goal of environmental leadership in the auto
industry and of redefining the Hyundai brand as a technological
innovator. As part of the Korean manufacturer’s Blue Drive initiative,
Hyundai has committed to reduce harmful emissions and produce
environmentally-friendly technology, and will bring to market a family
of fuel-efficient and eco-friendly cars and products.  The first product
to Canada will be the hybrid Sonata, which uses Hyundai’s
industry-leading lithium polymer battery technology.  The company also
aims to lead the way in fuel efficiency by achieving a fleet average of
6.7 km per 100 km (35 miles per gallon) by 2015 – five years ahead of
the US and the expected Canadian governments’ 2020 deadlines.

“In addition to developing world-leading environmental technology for
the future, we are doing everything possible to help provide clean air
to Canadians today,” said Kelleher.  “By investing unsparingly in
our R&D resources, Hyundai is leading the fight for a better
environment.”

Clean Air Facts:
●    When polled, clean air was listed as the third most important
environmental concern facing Canadians, well ahead of big-name issues
like climate change and global warming.**
●    Because Canada has had a pattern of high energy consumption, we
are the second highest per capita emitter of greenhouse gases in the
world.
●    1995 model year and older vehicles produce 19 times more
smog-forming pollutants than 2004 and newer models.*
●    These older vehicles make up one quarter of vehicles being
driven by Canadians and can generate as much as half of the smog-forming
pollutants caused by personal vehicle use.*

About Hyundai Canada
Hyundai Auto Canada Corp., established in 1983 and headquartered in
Markham Ontario, is a subsidiary of Hyundai Motor Company of Korea.
Hyundai vehicles are distributed throughout Canada by Hyundai Auto
Canada and are sold and serviced through more than 175 dealerships
nationwide.

In a sign that the Cash-for-Clunkers program is working and that car sales are finally starting to turn a corner, General Motors has announced that it is increasing production and adding overtime shifts at several plants.

Shifts will be added at GM’s CAMI plant in Ingersoll, Ontario, Canada and at the Lordstown, Ohio plant. The Lordstown facility is responsible for assembly of the Chevy Cobalt, while the Ingersoll facility is home to the GMC Terrain and the all new 2010 Chevrolet Equinox (pictured above).

The added shifts means General Motors will bring 1,350 employees back on the job.

Earlier this month Gm added overtime shifts at its Arlington, Texas plant where the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon are made.

The total production increase is said to be roughly 60,000 units, a move deemed necessary by General Motors to ensure its dealers have an appropriate number of vehicles on their lots after a surge in sales following the recent Cash-for-Clunkers legislation saw dealer inventories hit their lowest point since 1991.

[Source: Automotive News]