Cash for “Assembled in the USA” Program

Yesterday, I showed that the only "made in America" car (including engine and transmission) that would get someone trading in an Explorer the full $4500 Cash for Clunker benefit was a Ford Focus (though I shortchanged the Chevy Malibu and Saturn Aura, which are assembled in the US though may have an engine or transmission made in Canada or the US).

The point being that manufacturers don’t make many efficient cars in the US.

That said, if we look at whether the cars bought in the Cash for Clunkers are assembled in the US, then the story is more positive. Here’s the list of the top 10 vehicles bought with a Cash for Clunkers credit:

1. Ford Focus
2. Toyota Corolla
3. Honda Civic
4. Toyota Prius
5. Toyota Camry
6. Ford Escape FWD
7. Hyundai Elantra
8. Dodge Caliber
9. Honda Fit
10. Chevrolet Cobalt

All but the Caliber and Camry would have qualified for a full rebate under my scenario (if I used a 4WD Ford Explorer, which was the most traded-in vehicle, rather than a 2WD, then the Camry would get you the full benefit, and note the Escape qualifies for the small truck benefit, which is less stringent). 

Here’s the list again, with the assembly location:

1. Ford Focus, Wayne, MI
2. Toyota Corolla, Fremont, CA
3. Honda Civic, Greensburg, IN and Canada
4. Toyota Prius, Japan
5. Toyota Camry, Georgetown, KY and Lafayette, IN
6. Ford Escape FWD, Claycomo, MO
7. Hyundai Elantra, South Korea
8. Dodge Caliber, Belvidere, IL
9. Honda Fit, Japan
10. Chevrolet Cobalt, Lordstown, OH 

So in addition to all the local jobs based out of dealers, this program is supporting jobs in MI, CA, IN, KY, IN, MO, IL, and OH (as well as Korea and Japan). Claire McCaskill, you still hate Cars for Clunkers?

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  1. Leen says:

    Good news about the jobs
    Just returned from a trip to Dayton Ohio. that GM plant down the street from my parents is still very empty.

    Ew any idea about the environmental impact of “killing” the engines of what they are calling “clunkers” Versus giving those vehicles to folks who can not afford to buy a vehicle to get to work across town.

    NPR did a story this morning on those who are recycling the parts of these cars
    ‘Clunkers’ Pile Up On Auto Dealer’s ‘Death Row’
    http://www.npr.org/templates/s…..=111561543

    • BoxTurtle says:

      If you were you an untrusting kind of person, you might think that GM is keeping that plant closed so that when they reopen it everybody would come in under the third wage tier.

      That plant is/was fairly modern with a state built clearcoat paint shop. There has been some interest in purchasing the site, but GM is not the least interested.

      On another subject, you have to kill the engines. If you don’t, those clunkers will somehow end up on used car lots. Or sold out of Bubba’s back yard as “rebuilt, runs great”.

      If we want to start a program to get cars into the hands of those who need but cannot afford, lets have that debate. But lets NOT use the clunkers.

      Or we could try to design and build an affordable car. But that will cost at least 5K if made in the USA, since even if the parts are free the legacy costs and labor will hit that much. As an automaker, why would I spend a few hundred million to design a car where my profit per sale would be less than $100?

      We can’t run a car maker as a nonprofit. And we can’t afford to have a regular program of giving cars away via the government.

      Boxturtle (That said, this is looking like the best short term stimulus the government has done in a long time)

  2. bmaz says:

    Senate just passed two million dollar extension of CARS. That is now both wings of Congress, so I assume Obama will sign it asap.

  3. oldtree says:

    When do we expect a program that will help those on the lower economic rung than those still able to get a loan from a bank for a car? I know a 17 year old kid that got to trade in an Explorer for a Focus. Funny, he doesn’t even work? When should we expect the country to do something to benefit those at the bottom end of the ladder? I haven’t heard of anything to help them. With great despair.

    • bmaz says:

      Maybe when somebody proposes and successfully lobbies for such a program. Once again, you seek to demand something out of the CARS program that it was never designed to accomplish. Constantly berating and demeaning a program for not doing something it was never designed nor intended to do is of dubious efficacy. It is wildly successful at exactly what it was intended to do, can’t that be good enough? How often can you say that about any governmental program? Why the determination to run down something that has actually worked?

    • emptywheel says:

      While I agree with you that we need to do more for the people who are stuggling most, I think you miss how stimulus helps the economy as a whole. If there is money circulating, it’ll mean there’s more money in local government, more money supporting service jobs, etc.

      You treatment of this program is exactly akin to people, who have a job, bitching about the extension of unemployment (which, just like this program, is good stimulus in addition to supporting those who are really struggling). Yeah, you may not get the “free” money, but it helps society as a whole.

      • Petrocelli says:

        I read somewhere that Food Stamps is the best economic stimulus the Gov’t has implemented to date. Those who don’t understand the success of this CARS program are lost causes. Those who do can use the same model for other stimulii programs, this is amazing !

        Is it true that Chrysler had to stop it’s CARS program because it ran out of cars that qualify ?

        • bmaz says:

          Chrysler had two problems that have compounded each other. First off, they do not have many model lines that are attractive and appropriate for the program to start with; secondly, their inventory was pretty low because they idled or shut down their plants much earlier and more company wide than did other manufacturers. The only reason they had inventory at all was because very few people were buying Chrysler products at all during the last year. Chrysler has a real problem, and it is only going to get worse because this program will give competitors Ford and GM a huge push of momentum going into the new model year at end of September/start of October. Chrysler will have no push and no exciting new products to stir consumers’ imagination for the new model year. Very bad.

          • Petrocelli says:

            What was always puzzling to me was that Dieter & Co didn’t lay a road map to innovate smaller, more fuel efficient cars like those prevalent in Europe.

            Chrysler has suffered from real leadership for too long …

  4. runfastandwin says:

    Boy it’s aggravating that most of those cars are Japanese. I wonder how many “country first” republicans are using this program to buy foreign cars? And it doesn’t matter if the car is built here, every foreign car bought weakens our guys and strengthens theirs.

    • Rayne says:

      While the bulk of the money will end up overseas from the sales of the foreign vehicles, it’s no longer cut-and-dried that buying a foreign car comes at a complete loss to the American auto industry.

      You see, nearly all of the car makers now use the same suppliers for capital equipment and raw materials. They don’t all overlap, but you can be certain that Nissan and Honda, for example, are using the same equipment suppliers as Ford and GM. Each of the companies purchasing new technology in manufacturing equipment is investing in overall development which the other automakers will eventually use. Some amount does come back in the form of improved technology for American automakers.

      And then there’s the supply chain; the foreign automakers help keep demand up for suppliers who also furnish materials to American automakers. Although not readily apparent to consumers, the supply chain supporting the automakers is at least as large or larger than the automakers themselves. Keeping suppliers’ volume up means that the automakers including Americans can ensure a consistent supply of parts and raw materials which meet their needs and match pricing expectations with some amount of redundancy necessary during supply chain disruptions.

  5. crack says:

    I’m glad the program is helping people, but I’m a little annoyed that it is being extended. I have a 2000 malibu so for buying a sensible car 9 years ago I get nothing. Someone who bough this is eligible. Excuse me for not being enthusiastic about the program.

    I’d rather all the billions went to those who made stupid housing decisions (i rent and have been warning about how housing was overpriced for years, so it’s still not helping me). Housing decisions have a much bigger networked effect, even here in MI.