While Cash-for-Clunkers was wildly successful at bringing customers back into dealers showrooms this past summer, it may have caused the consumer market to blow its load all in one shot, as J.D. Power and Associates expects September to see the second lowest selling rate when automakers report their numbers this week, according to freep.com.
One major contributing factor is the depletion of inventory and slow down in production that accompanied cash-for-clunkers. Bob Page, owner of Page Toyota in Southfield, Michigan, started this month with only 18 vehicles in stock; he normally carries 200. At the end of August, Chrysler, who shut down their plants earlier in the year, had not even a 15-day supply for six of their models, and their production has only begun to catch up towards the end of September, according to Kathy Graham, spokeswoman for Chrysler.
Dealers and analysts though, are hard pressed to draw conclusions about the state of our economy just based on September’s sales, considering the surge that was caused by Cash-for-Clunkers.
– By: Stephen Calogera
Source: Free Press