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Cars Blog

Rebates for 'Clunkers' Aid Ford Most as Car Sales Climb

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August 3, 2009 4:14 pm
By Peter C. T. Elsworth

DETROIT -- The government's "cash for clunkers" program gave automakers a desperately needed sales boost in July, though their relief could be short-lived if the Senate does not vote to extend the trade-in program after it ran out of money within days of starting, according to The New York Times.

The Ford Motor Company said Monday that its United States sales rose 2.3 percent last month, marking the first year-over-year increase for any of the six largest carmakers since last August. Ford had not posted a monthly sales increase in nearly two years. Ford's compact sedan, the Focus, was the most common selection by people who used the trade-in program, the government said Monday.

General Motors and Chrysler fared better than in recent months but did not benefit from the program as much as Ford, which heavily promoted the government-sponsored rebate program at its dealerships, in television ads and on its Web site. G.M. reported a 19 percent decline in July from a year ago, and Chrysler said sales fell 9 percent.

Honda's sales fell 17 percent. Volkswagen reported a 0.7 percent increase. Over all, automakers said the new-vehicle selling rate rose in July to its highest level in 11 months. Through the first half of this year, sales were down 35 percent compared to the first half of 2008.

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