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Will Cash-for-Clunkers Bring Auto Salvation?

CNW forecasts big bump in sales.

by on May.25, 2009

After a lengthy debate, it's looking likely that a Cash-for-Clunkers bill will be passed by Congress this Summer.  And a new study says it could yield significant new sales for struggling automakers.

After a lengthy debate, it's looking likely that a Cash-for-Clunkers bill will be passed by Congress this Summer. And a new study says it could yield significant new sales for struggling automakers.

One of the first bits of business awaiting Washington lawmakers, after their week-long Memorial Day break, is the cash-for-clunkers debate.  Hoping to kick-start the U.S. market, several proposed measures would offer big cash incentives to trade in older vehicles for newer, more fuel-efficient ones.

Whether such a bill will pass – and in what form – remains to be seen.  But with imilar laws generating big returns in markets like Germany and the U.K., there’s growing support that could translate into votes.

Unfortunately the U.S. versions, unlike the U.K., require no contribution from  the automakers who would benefit the most from it.

Will a cash-for-clunkers bill work here?  A new study from the Oregon-based research firm, CNW Marketing, suggests it could prove extremely effective, depending on how inclusive a final measure is defined.

“If the federal government can enact a cash-for-clunker program quickly,” writes CNW President Art Spinella, “if could mean at least a quarter million additional car sales in ’09, and as many as 1.2 million if the effort catches the fancy of all those who are even somewhat interested in ridding themselves of an older vehicle.” (more…)