Clunkers prove boon to scrap, recycling yards
Cash for Clunkers has brought new life to an auto graveyard in Clayton. Business is also piling up at Raleigh Metal Recycling, where clunkers are being crushed like pancakes.
Posted — UpdatedBrown, Smith and their employees can expect to be busy for another couple of weeks after the Senate approved a $2 billion infusion of cash for the rebates Thursday. Officials expect to fund about a half-million more car purchases through Labor Day.
The longer-term impact of the program is less clear.
"Once these clunker rebates expire, it is over," predicted economist Richard Yamarone of Argus Research. "Consumers are not going to keep buying cars. It is a temporary one-time gimmick, not a long-lasting tonic for the recovery."
In the program so far, GM's share of cars sold is largest, accounting for 18.7 percent of new sales. Toyota Motor Corp. followed with 17.9 percent, while Ford had 16 percent. Detroit automakers represented 45.3 percent of the total sales, while Toyota, Honda Motor Co. and Nissan Motor Co., all Japanese firms, totaled 36.5 percent.
Toyota also has the best-selling new model for traders of clunkers, the Corolla. The Ford Focus, Honda Civic, Toyota Prius and Toyota Camry are also favorites. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 mpg. Six of the top-10 selling vehicles are built by foreign manufacturers, but most are built in North America.
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