'Clunkers' Drive Car Sales, Especially At Ford
Karl Greenberg, Aug 03, 2009 04:07 PM
With the Obama administration hoping to kick-start the Car Allowance Rebate System (CARS), which needs a cash refill, automakers are pointing at July sales to extol the program's virtues. Depending on one's point of view, it was either wildly successful or woefully underfunded -- as the program, slated to run through October or until cash ran out, lasted only days.
Ford seems to have gotten the biggest boost from the program, at least among domestics. It says its retail sales of Ford, Lincoln and Mercury vehicles were up last month 9% versus a year ago. That would make the gain Ford's first year-over-year increase since November 2007.
Sales of Ford vehicles that qualify for CARS were up sharply: Ford Fusion saw a 66% increase; Mercury Milan a 60% increase, and sales of Ford Escape jumped 94% versus the month last year. Sales of the Mercury Mariner were up 71%, Ford Focus sales rose 44%, and the automaker said its sales of hybrid vehicles jumped 323% last month versus July 2008. The hybrid version of the Ford Fusion is also now Consumer Reports' top-rated domestic sedan, tied with the Toyota Camry Hybrid.
The company says 1 million consumers visited www.LetFordRecycleYourRide.com. The only other company that seems to have done as well on a percentage basis was Hyundai, which posted a 21% increase over last month and a 12% increase compared with July 2008 in U.S. sales.
