(August 2009) The Cash for Clunkers party is over, and now the auto industry is likely to experience a painful hangover. Edmunds.com anticipates a steep decline in sales in the coming weeks based upon a significant drop in "purchase intent" behavior of its Web site visitors.

"Current purchase intent is down 50 percent from the Cash for Clunkers peak, and down 11 percent from the June average," noted Edmunds.com Senior Analyst David Tompkins. "Day by day, intent is slipping: Sunday activity was down 21 percent from Saturday, then Tuesday activity was down 16 percent from Monday."

(August 2009) The success of the short-lived Cash for Clunkers program has created a new problem for Ford and Chrysler — a shortage of some vehicles.
Chrysler is particularly hard hit because of long factory shutdowns earlier this summer.

Vehicles that Chrysler had a hard time moving just two weeks ago are now hard to find. For instance there is only a seven-day supply of Jeep Patriots and a 15-day supply of the Jeep Compass. A 60-day supply is considered normal.

(August 2009)  Edmunds.com warns consumers that car prices are climbing as the "Cash for Clunkers" frenzy is influencing the marketplace.

"Since the program launched, we've seen that shoppers are getting less of a discount off sticker price for new cars," notes Senior Analyst Michelle Krebs in her report on Edmunds' AutoObserver.com. "In some cases, they are choosing less expensive trim levels and option packages than had been typical in recent months, but paying more for them."

By Ted Biederman
MotorwayAmerica Editor

(August 2009) I fully concur with the decision of Judge Robert Gerber, there was little choice considering the roll down consequences of total liquidation of GM. Gerber noted in his opinion from the U.S. bankruptcy court in Manhattan that the sale of the good assets would "prevent the death of the patient on the operating table."