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Clunkers Sales point to challenges for Detroit's Big Three
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Michigan is almost another plantet when it comes to replacement sales for clunkers. Analystspoint out that 81.1 % of michiganians traded in their domestic clunkers for domestic replacements, but only 42.8% in the rest of the country did so.
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Sinking demand is casting a long shadow on the future of Detroit automakers, not the sinking demand of the 3rd quarter which was bad, but the sinking demand for the 4th quarter 2008 and in 2009. Something that GM and Ford with their optimistic forecasts of 13-14 million vehicles for 2009 as stated in theSenate on November 18, 2008 by their CEO's, may have missed as sales may be in the neighborhood of 10 million or lower in 2009.
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Is the narrow cash for clunkers program a missed opportunity to give a desperately needed boost to the car industry
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The narrow profile for the cash for clunkers program in the USA makes the customers people who are economically challenged in the midst of a deep recession, making it different from the German program that boosted sales by 40% in 2009 over 2008. WIth only $1 billion for the American program and 5 billion euros in Germany the American program is also too small to make an impact.
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Clunkers Sales point to challenges for Detroit's Big Three
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The scramble for market share after the Detroit bankruptcies and the efforts for better quality.
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The bankruptcies and the closing of plants, the shift to cars, crossovers and higher mpg vehicles, the preferences of newer generations of buyers including frugality with this economic downturn, mean carmakers can quickly gain or lose market share at this time. Quality improvements are coming from all sides, for the Japanese the Americans are neck and neck, and the Koreans are sprinting ahead. For the Americans there is lack of consistency brand to brand.
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Clunkers Sales point to challenges for Detroit's Big Three
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U.S. auto sales drop to a seasonally adjusted rate of 9.2 million vehicles in September 2009
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The month after the cash forclunkers program annual sales rate was down for the industry at asubstantial pace. Ford and Hyundai were the only bright spots.
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Clunkers Sales point to challenges for Detroit's Big Three
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