| July brought welcome relief to our nation's auto | | | | “For this to translate into sustainable sales, |
| dealers as the dam of pent up consumer demand | | | | we’re going to need to see a marked |
| finally showed some leaks. | | | | improvement in jobs.” |
| Yesterday's July US Auto Sales Results indicate | | | | However, what few are discussing is how the |
| consumers flocked in massive numbers to take | | | | sudden rush to more fuel efficient vehicles will |
| advantage of the taxpayer subsidized Cash for | | | | play out if gas prices remain stable. |
| Clunkers / CARS program. | | | | “We saw a mad rush to smaller cars a |
| Not surprisingly, July’s most popular online | | | | year ago and it didn’t play out,” said |
| vehicle searches at reflected consumers' desire to | | | | Ruggles. “In the face of $4 per gallon |
| obtain the additional $3,500 - $4,500 government | | | | gasoline, consumers could not get out of their |
| rebate. | | | | SUV's and light trucks fast enough. Then, just a |
| | | | few months later, fuel prices returned to more |
| The question on dealers’ minds is whether | | | | desirable levels and they rushed right back into |
| this is a flash in the pan or whether it’s a | | | | heavies.” |
| spark that will reignite US auto sales. | | | | Congress is set to debate an extension of the |
| “I suspect it reflects the past 3-4 | | | | CARS program later this week. Regardless of |
| months’ paralysis as consumers waited for | | | | your thoughts on the program’s merits, it |
| the government to release the program | | | | has spurred considerable action in the short term. |
| guidelines,” said noted industry analyst | | | | What remains to be seen are the long term |
| David Ruggles of The Ruggles Report™. | | | | implications of the short term gains. |