STUDY: Cash for Clunkers helped Japanese way more than Detroit 3

STUDY: Cash for Clunkers helped Japanese way more than Detroit 3

Filed under: Government/Legal, Chrysler, Ford, GM, Honda, Nissan, Toyota



While there is no question that Obama's Cash-for-Clunkers program accelerated vehicle sales this summer, a new report by the University of Michigan's Transportation Research Institute shows the big winners were from Japan, not Detroit.

According to the study, nearly 85 percent of the trade-ins were from General Motors, Ford, and Chrysler, yet they only sold 39 percent of the new cars moved off the lots. On the other hand, 8 percent of the trade-ins came from Toyota, Honda, and Nissan, manufacturers who accounted for 41 percent of new car purchases.

While these numbers may be justified by the large quantity of inefficient domestic trucks and SUVs that were deemed clunkers, customer loyalty also seems to have taken a big shift. About 68 percent of owners who traded in Toyota, Honda, or Nissan vehicles replaced them with another from one of those Japanese brands, while only 43 percent of consumers who traded in Detroit steel purchased another General Motors, Ford, or Chrysler product. The program cost the U.S. taxpayers about $3 billion.

[Source: USA Today | Image: Justin Sullivan/Getty]STUDY: Cash for Clunkers helped Japanese way more than Detroit 3 originally appeared on Autoblog on Fri, 13 Nov 2009 19:30:00 EST. Please see our terms for use of feeds.



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Well that tells you something now doesn't it?

of course people want a reliable car versus an american car who's needed a bail out.

no shit sherlock. i found this out....hmmm....months ago when i bought a new honda.

For US car companies, it takes bankruptcy and bailouts before they start to change their product line, whereas foreign companies are already way ahead in the game. Oh well. Good bye Chyrsler and Chevy. Ford seems to be barely hanging in there though.