The new Cash for Clunker’s program is already getting a lot of mileage- it spurred 19,328 sales yesterday- worth $95.9 million in subsidies. The trade group for US auto dealers is concerned that the government’s $1 billion program will run out of money before the retailers get reimbursed.
A Transportation Department Spokesman said they will begin to alert dealers when funds get low, so that deals aren’t caught in the pipeline. The program is set to run until funds are exhausted or until the end of October- some are skeptical that it’ll even last another week. John McEleney, chairman of the National Automobile Dealers Association in Washington and the operator of General Motors Co., Toyota Motor Corp. and Hyundai Motor Co. outlets in Iowa, said yesterday, “It’s obviously not going to last through the end of October and it may not last another week.”
http://www.bloomberg.com/apps/news?pid=20601103&sid=anhSjXp64Ul8
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