Is Cash for Clunkers working?
General Motors announced today that they want to bring back 1350 union workers to help them with increased demand that could be from the result of Cash for Clunkers. They are going to bring these workers back from both the US and Canada operations, and they hope these workers will help them increase production by 60,000 units.
Not only is GM bringing employees back to help with the Cash For Clunkers demand, but they are also leaving their Orion Township Michigan plant open until Thanksgiving, which will increase hours for about 10,000 workers.
Cash for Clunkers is a program that gives buyers up to $4500 from the government, when they trade in their gas guzzlers and older cars for the purchase of a new more fuel efficient model. This program caused a spike in sales, as everyone wanted to get in on the deal. The government even needed to add additional billions in funding due to the popularity of Cash for Clunkers.
Looks like the GM bankruptcy is really helping GM emerge and come back as a strong player. However, it has shown that Cash for Clunkers has helped Toyota more than GM, even with the new Chevrolet Camaro when it came to auto sales.
[Photo by Bill Pugliano/Getty]
