Cash for Clunkers
The surge in US auto sales that has been a result of the government?s Cash for Clunkers program has prompted both Ford and GM to increase their planed production rates for the second half of 2009.
The No.1 U.S. carmaker said it would build 60,000 more vehicles than planned for the third and fourth quarters by increasing overtime, adding shifts at several North American assembly plants.
The move will bring about 1,350 hourly workers in the United States and Canada back to assembly lines, GM said.
There are obviously a lot of questions about the program, like will the growth in auto sales be sustainable or will it fizzle once the program runs out of cash again? How will the increases in production trickle down through the supply chain and thus to the rest of the economy? We have seen companies running side by side add on programs and matching programs which I think they can run with even after the end of the program, so I?m fairly optimistic, but like most things the government does, it?s still in essence a gamble. So far it looks like it?s paying off.