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Saturday, August 22, 2009

What makes a man...take advantage of "Cash for Clunkers" and go down the hybrid route?

With the "Cash for Clunkers" program in its final days, the question remains whether the program was a success. There is no argument that Americans took advantage of the program. Funding was exhausted so fast, Congress granted an additional $2 billion to extend the program for a few more months. But were the purchases representative of the theory behind the program? How much of an increase was there between the miles per gallon (mpg) of the clunker traded in and the new car purchased? How many new hybrids were purchased through the program?

When the final numbers come in it will be interesting to see whether people are actually embracing new technology like the hybrid, or simply increasing their carbon footprint with the purchase of a new fossil fueled engine that gets a mere 2 mpg more than their "clunker." It may be that the price of going as green as buyers would like was just not financially feasible with the state of the current economy.

But who knows, maybe the soon to be released Chevy Volt missed a great opportunity to be the "Cash for Clunkers" number one seller. Didn't Geithner just say the economy is turning around?

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