going, going, gone
the government announced that the popular cash for clunkers program will end on monday because it is running out of moolah. the program gives “consumers a credit of up to $4,500 toward the price of a new car or truck if they turn in an older vehicle with lower gas mileage. it has generated more than 457,000 sales since july 24, prompting g.m., the ford motor company and other automakers to increase factory output and call back some idled workers.” the program hasn’t been all roses for car dealers–so far they’ve been paid only $149M of the $1.9B owed to them for fronting the rebates (funded by the stimulus), “if the funding is exhausted before all reimbursements are made, some dealers — and possibly g.m. — could end up having to write off the unpaid credits. the administration does not plan to seek a third installment of funding.”
so i guess this means that the shareholders will take a bath on the stock.*
* by shareholders, i mean, we the people.
photo courtesy of dno1967
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