Unintended consequences: Cash for Clunkers

[simpletron]

if you look at each companies' share of the Cash for clunkers sales, it is close to the same as its total market share(+/- 1%). so while big three aren't getting the best sellers, they are grabbing 1 or 2 % more than sales than their market share. this was recently in businessweek.

My big concern with cash for clunkers is that its a one time bonus. Once its done, demand falls again and they are in the same boat as before. Lets just hope that one time splurge is sufficient to get them through to better times though I doubt it.

I share this concern. I think it is mainly shifting near future sales to now. I think most of the people who are buying, would have bought a car within a year, though it may put people who would have bought used into new car instead(which helps the auto companies some).