Can new automotive technology save the American auto industry?
by R. Brock Pronko, Regional Business Analyst The “Cash for Clunkers” program not only stimulated the economy but showed how last year’s high fuel prices had dulled the consumer’s taste for gas guzzling and it also revealed how eager the beleaguered American automakers are to sell fuel efficient vehicles to at least retain their shrunken market shares. Customers of Smail Auto Group’s dealerships in Johnstown and Greensburg, Pa. traded in over 200 “clunkers” for more fuel efficient vehicles between late July and the program’s cutoff date on August 20th. Smail carries 11 brands of vehicles including three GM brands, Ford-Lincoln-Mercury, Mazda, Kia, Honda, Acura, and Mercedes Benz. The billon-dollar “Cash for Clunkers” program was so successful that the government had to increase its claim processing staff from 225 to 5,000 and ask Congress to authorize an additional $2 billion to cover the 688,000 “clunker” deals nationwide. The overwhelming consumer response caused a bottleneck in deal
