No wonder Ford showed a profit

| November 5, 2009

From USA Today:

The Obama administration’s $3 billion “cash for clunkers” program should be renamed “cash for gas-guzzling pickup trucks,” according to an Associated Press analysis of the data.

AP reports that for 8,200 deals — the most common — buyers traded in their old Ford 150 pickups for new Ford 150 pickups. Fuel economy for the new trucks is just 1 to 3 mpg better than the clunkers — less than 20 mpg.

Right on Ford’s bumper were big old Chevy and Dodge pickups that were traded in for big new Silverados and Rams.

Overall, more than 95,000 new vehicles — about one in seven — got less than 20 mpg. On top of that, taxpayers subsidized scores of deals — totaling $562,500 — for new cars and trucks that got worse mileage than the trade-ins.

Buyers received rebates of either $3,500 or $4,500. Their trade- ins were then junked.

Here’s the real problem with the “Cash for Clunkers” program: the Obama Administration and the Democratic Congress have so totally blown out the budget between bailouts and the “Stimulus” package that $3 billion sounds like chump change. But it’s good to see the mainstream media actually doing a bit of investigative reporting on this.  ..bruce w..

Be Sociable, Share!

Category: Cars, Economics, Idiot Congresspersons, Main, Obama Administration, Sea of deficits

About the Author ()

Webster is Principal and Founder at Bruce F. Webster & Associates, as well as an Adjunct Professor of Computer Science at Brigham Young University. He works with organizations to help them with troubled or failed information technology (IT) projects. He has also worked in several dozen legal cases as a consultant and as a testifying expert, both in the United States and Japan. He can be reached at bwebster@bfwa.com, or you can follow him on Twitter as @bfwebster.

Comments are closed.