Tuesday, August 4, 2009

Cash for Clunkers, America's Auto Bailout for Japan

It turns out the Democrats' much celebrated Cash for Clunkers program is greatly benefiting a country. The problem is the country is not America. It's Japan.

Out of the first 80,000 vehicles traded in and destroyed under the Cash for Clunkers program, 47% are American vehicles. The top ten trade-ins are all American vehicles. Making matters far worse, six out of the top ten new vehicle models being purchased under the Cash for Clunkers program are foreign models, primarily Toyotas and Hondas. Even if many of those Japanese vehicles are at least partially assembled by American workers, the Japanese auto companies are benefiting on the backs of the American taxpayer. After all the Cash for Clunkers program is being funded with Federal money, which the taxpayers supply. So, if you pay taxes, you are paying people, who probably should not be buying new vehicles, to have their American vehicles permanently disabled in exchange for a large credit toward buying a brand new foreign car. The auto executives in Japan must be dancing in the streets.

In case you are curious, here are lists of the top ten trade-ins and new car purchases in the Cash for Clunkers program so far.

Cash for Clunkers Trade-Ins
1. 1998 Ford Explorer
2. 1997 Ford Explorer
3. 1996 Ford Explorer
4. 1999 Ford Explorer
5. Jeep Grand Cherokee
6. Jeep Cherokee
7. 1995 Ford Explorer
8. 1994 Ford Explorer
9. 1997 Ford Windstar
10. 1999 Dodge Caravan

Cash for Clunkers New Cars
1. Ford Focus
2. Honda Civic
3. Toyota Corolla
4. Toyota Prius
5. Ford Escape
6. Toyota Camry
7. Dodge Caliber
8. Hyundai Elantra
9. Honda Fit
10. Chevy Cobalt

No comments: