Cash From Clunkers
Let’s have a $4,500 subsidy for everything.

Americans are streaming back into auto showrooms, and one reason is the “cash for clunkers” subsidy. Democrats are naturally claiming this is a great success, while Republicans are claiming that because the program has run out of clunker cash so quickly, this proves government can’t run the health-care system. How do we elect these people? What the clunker policy really proves is that Americans aren’t stupid and will let some other taxpayer buy them a free lunch if given the chance.

The buying spree is good for the car companies, if only for the short term and for certain car models. It’s good, too, for folks who’ve been sitting on an older car or truck but weren’t sure they had the cash to trade it in for something new. Now they get a taxpayer subsidy of up to $4,500, which on some models can be 25% of the purchase price. It’s hardly surprising that Peter is willing to use a donation from his neighbor Paul, midwifed by Uncle Sugar, to class up his driveway.

On the other hand, this is crackpot economics. The subsidy won’t add to net national wealth, since it merely transfers money to one taxpayer’s pocket from someone else’s, and merely pays that taxpayer to destroy a perfectly serviceable asset in return for something he might have bought anyway. By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years.

It isn’t clear this will even lead to more auto production over time, since the clunker cash may simply cause buyers to move their purchases forward. GDP will get a fillip in the third and perhaps fourth quarters, which will please the Obama Administration. But the test will be if auto sales hold up next year and into the future once the clunker checks go away. The debate over the subsidy may even have prolonged this year’s auto slump as buyers delayed their purchases waiting for the free lunch.

All of Washington professes to be surprised that the $1 billion allocated to the subsidy has been used up so quickly, but giving away money is one thing government knows how to do. The Clunkers who are in Congress are now patting themselves on the back for their great success, and the House quickly voted to pass out another $2 billion in clunker coupons. With a $1.8 trillion budget deficit, who’s going to notice this pocket change?

Clearly, we spoilsports need an attitude adjustment to Washington’s new economics. And since money is no object, let’s give everyone a $4,500 voucher for other consumer goods. Let’s have taxpayers subsidize the purchase of kitchen appliances, women’s clothing, the latest Big Bertha driver—our Taylor-made is certainly a clunker—and new fishing boats. These are hardly less deserving of subsidies than cars, and as long as everyone thinks we can conjure wealth out of $4,500 giveaways, let’s go all the way.

http://online.wsj.com/article/SB10001424052970204313604574326531645819464.html

Cars Replacing Clunkers Are Mostly Japanese
Posted Aug 5, 09 5:58 AM CDT in Business, Technology, Politics | Share Share Newser

(Newser Summary) – The "cash for clunkers" program might be a boon for car dealers, but for American automakers the news isn't so good—four of the five top-selling cars in the program are Japanese. While the Ford Focus is the No. 1 seller, Toyota and Honda occupy the next four spots. The new vehicles get an average of 25.4 miles per gallon, while the traded-in cars—more than 80% of which were trucks and SUVs—get just 15.8 mpg.

The program was continued today.

toyota and honda both have plants in the united states

toyota plant in the u s

Fremont, California, US (NUMMI)
1984 Corolla - 157,561
Tacoma - 151,566
Voltz* - 8,108
Pontiac Vibe - 59,552
Total - 369,836
Corolla - 157,561
Tacoma - 161,566
Voltz* - 1,733
Pontiac Vibe - 74,223
Total - 395,083
Corolla
Vibe
Total: 428,633 5,600 people
370,000 vehicles
Former poor-quality GM plant. UAW. Joint venture. Currently high quality. 5,400 employees in 2006. Japanese president. Free daily tours.

--------------------------------

Huntsville, Alabama, US
2003 V6 and V8 engines for Tundra and Tacoma
52,318 V8s
350 people (500 in 2005)
120,000 V8
130,000 V6

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Princeton, Indiana, US (TMMI)
1996 109,025 Tundras
77,561 Sequoias
105,663 Tundras
66,671 Sequoias
119,196 Siennas
324,190 Tundras,
Sequoias,
Siennas 4,700 people
500,000 vehicles
2006: 4,645 people; FX-SX starts Q1 2008

------------------------------------

Princeton, Indiana (Toyota Motor Mfg) 1996 n/a 4-speed Camry automatics
5-speed Sienna, RX330 automatics
Corolla/Matrix/Vibe engines 360,000 transmissions

--------------------------------------

Georgetown, Kentucky (US) 1986 Avalon
Camry
Camry Solara Avalon
Camry
Camry Solara
Sienna

Avalon
Camry
Solara
Camry Hybrid
6,900 employees
500,000 vehicles
500,000 engines Toyota’s largest facility outside of Japan; highest production of any foreign plant in the US. Also builds four and six cylinder engines and powertrain parts. American president. Builds Toyota’s first American-made hybrid.

-----------------------------------------

Buffalo, West Virginia (US)
201,273 Fours
152,070 V6s
360,957 Trans
225,402 Fours
171,808 V6s
382,510 Trans
930 people
340,000 Fours
200,000 Sixes
360,000 Trans
Builds four cylinder and V6 engines and automatic transmissions
. Started making automatic transmission gears in 2006.

---------------------------------------------

Long Beach, CA (TABC) Parts (see description) Parts (see description) Not listed Toyota’s first U.S. manufacturing plant; produces sheet metal components, steering columns, catalytic converters, and coated catalytic substrates for US and export. Assembles commercial trucks for Hino Motors to be sold in North America and beginning in 2005, will assemble 4-cylinder engines.

------------------------------------------------

San Antonia, TX (TMMTX) 2006 None One Tundra per minute starting in 2007 2,100 people in 2007 $1.3 billion plant, capacity 200,000/year, production started Nov 2006.

-------------------------------------------------

Blue Springs, Mississippi 2010? None 150,000 Highlanders per year starting in 2010 2,000 people in 2010 $1.3 billion plant started in 2007, near Tupelo

__________________________________________________________________

http://www.toyoland.com/toyota/plants.html

Honda Auto Production Hits 10 Million Cars and Light Trucks in the U.S.


http://world.honda.com/news/2003/c031125.html



note 2003

------------------------------------------

East Liberty Auto Plant East Liberty, Ohio, USA Honda Civic
Honda Civic (GX NGV)
Honda CR-V (from September 2006)
Honda Element 1989 short distance from Marysville Auto Plant

--------------------------------------------

Honda Manufacturing of Indiana Greensburg, Indiana,USA Honda Civic 2008 The latest assembly plant of Honda in USA[3]

-----------------------------------------------

Honda Manufacturing of Alabama Lincoln, Alabama, USA Honda Odyssey
Honda Pilot
Honda J engine November 16, 2001

------------------------------------------------

Marysville Auto Plant Marysville, Ohio, USA Honda Accord
Acura TL
Acura RDX
motorcycles (Honda Gold Wing) 1982 First ever assembly plant of a Japanese carmaker in America (see note below).

--------------------------------------------------

Note: The Marysville plant started assembling motorcycles in 1979, cars in 1982. In February 2007, Honda announced that it would cease production of motorcycles in the United States in spring 2009.[4]

___________________________________________________________________

http://en.wikipedia.org/wiki/List_of_Honda_assembly_plants

====================================================================

United States

North American Facilities List and description

* Lincoln, Alabama — Odyssey, Pilot, Ridgeline, V6 engines
* East Liberty, Ohio — Civic Sedan/Coupe/GX, Element, CR-V
* Marysville, Ohio — Auto — Accord Sedan/Coupe, Acura TL, Acura RDX,
* Marysville, Ohio — Motorcycle — Gold Wing 1800, Valkyrie Rune, VTX 1300/1800, Shadow 1100, motorcycle engines
* Anna, Ohio — Engines
* Raymond, Ohio — Vehicle R&D
* Indian Lake, Ohio — Automatic transmissions
* Torrance, California — Vehicle R&D/design
* Swepsonville, North Carolina — General purpose engines, Walk-behind lawn mowers, Snow blowers, String trimmers, Water pumps, and Tillers
* Greensboro, North Carolina — HondaJet
* Greensburg, Indiana — Civic Sedan
* Timmonsville, South Carolina — All-terrain vehicles (ATVs) and personal watercraft (PWCs) — Four Trax Recon, Four Trax Foreman, Four Trax Rancher, Four Trax Rincon, Four Trax Rubicon, Sportrax 400EX/250EX, AquaTrax F-12/12X
* Tallapoosa, Georgia — Automatic transmissions


________________________________________________________

http://en.wikipedia.org/wiki/List_of_Honda_facilities#United_States

What's the problem, with that Adj?

My problem with it...?

It smacks of a bailout... Congress KNEW we would not allow another bailout... So they slipped the money through the 'backdoor'...

and we just saw the darn carrot and JUMPED on it like it was honey... Or at least some people did.

and congress also knew that MANY MANY MANY more jobs would hit the unemployement roles if they did not bolster that segment...

But it's just sticking a finger in the dike... pluging the leak but not fixing the foundation... That dike is still gonna fail.

i do not see a problem with it

my post was in response to:

""""but for American automakers the news isn't so good—four of the five top-selling cars in the program are Japanese.""""

when they to are buiding in america

and there really is no true american car maker any more

I think the cash for clunkers is a good idea.It is about time the government started giving the American people some money back for a change even though some people are not eligable for it.Our government has pissed away 800 billion here and 300 billion there and for what?So we could read how these execs got multi million dollar raises and a kick in the nuts to the taxpayers.If our government wants to start giving your average taxpayer money back in the form of cash,rebates,or tax credits than I am all for it.I would rather us get it than some fat cigar sucking CEO,blowing a million on a vacation to the bahamas and refusing to explain where 10 billion dollars went last month.This recent rebate has also had immediate effects on the economy putting cash into the hard hit auto industry and the auto dealerships around the country.

For once Obama done something right.Maybe he is starting to think of a Conservative.Lets hope this trend continues.

I agree he done something right he saved american jobs... POINT!

But I would have liked the respect of hearing that was the point.

If it was... he might of got lucky.

But i'll give him the point... 3... It saved american jobs.

I will trade my old truck ( ) and accept the debt with a smile on my face to save an AMERICAN job!

But durned if I'm gonna trade that truck JUST to take on a debt.

Nor do I really want bailout money going to outside companies lest they be a helpin me.

Cash for clunkers is about as inefficient as the bailouts that required so much printing of money.

It all adds to government spending.

On the plus side, at least this money does benefit the american people a little.

The downside is the fact that it really does nothing for the economy.

But, as i said, i would rather see this money subsidize purchases for joe shmoe than wind up in some billionaire's bank account.

If the market types would invest local the way they invest in wall street...

They would undercut the government.

There would be growth and prosperityin foundational terms... and the government would be left holding that bag of money they stole(printed).

FED would be left with no choice but to feed it back in (or burn it and stop buffering the books).

The dealers in St. Louis have been kept busy with this. They're selling cars and the car salesmen are doing well with it. The steel plant by me is running again. The circle has started.

Houses are selling again too.

Houses are still overpriced for their actual worth.

Made a sub bubble is all we did.

Everyone gonna run round now and call out...

The sky is rising the sky is rising...

and then that bubble will also burst.

We ain't fixin it. We are prolonging it.

adj4u...

I notice that you said, and listed, all those foreign manufacturers that " build " cars here in the states.

The problem with that is, even though it does put some Americans to work building them, the money the companies make does not go into OUR economy. It goes back to Japan in the form of profits.

Those profits go into the Japanese economy.

I would say it's a lot more than 'Some' americans building foriegn cars. And each one of those americans spend money. Oh well this is useless. See ya..

Indeed. It has benefited the car industry. I know it is difficult to see the fault in this, trust me. I didn't understand until the last year or so.

In order for a capitalistic system to continue to thrive, demand cannot be artificial.

Supply and demand is the rule that governs the world. Basically it is SUPPOSED to be the things that are most useful to people, are the things making the biggest market. This encourages production of those useful things. If healthcare is more important to you than a new car, than maybe that's what you should spend money on. But, if the car is subsidized, you just artificially made it worth more, and as a result, healthcare worth a little less.

When you subsidize something, you are encouraging something be purchased that would otherwise not be. This is how the more valuable things get ignored.

And i truely believe, looking at the big picture, this is what is tearing our nation apart...