Cash for Clunkers helps Toyota outsell Ford: First Signs of Recovery

Over recent months, Toyota sales have finally started to see a slow increase in its sales, for the first time this year the Japanese automaker has outsold Ford. The main reason for this sudden increase is the government’s recent Cash for Clunkers program. That program has now come to an end, but Congress have now started to speak out about the Cash for Clunkers bill.

According to Bloomberg, since the Car Allowance Rebate Scheme or CARS was introduced sales have been at their highest level this year, slowing Toyota’s decline in vehicle sales by 11 percent compared with June sales which saw a 32 percent drop.

There are now hopes that this could finally be the first signs of a recovery for the auto industry, which has seen its worst slump since 1976. There are a number of key factors why the auto industry has been in a decline, one reason is the high U.S. gasoline prices, which went as high as $4.11 a gallon in the summer of 2008. A high unemployment rate also forced consumers to tighten their belts and stop spending money on things such as new cars.

Read the full article over at Bloomberg

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