Toyota Leads in Cash for Clunkers

The biggest single beneficiary of the $3 billion "Cash for Clunkers" government program so far is the Japanese automaker Toyota, according to federal figures released Friday.

Three of the five most popular vehicles purchased under the program are Toyota models: the Corolla (No. 1), the Camry (4) and the Prius (5).

Controversy over the program has focused in part on how much of the U.S. tax money will go toward stimulating business for foreign automakers.

Halfway through the program, Toyota is getting the largest share of the new purchases under the program with 19 percent, according to the figures released Friday by the National Highway Traffic Safety Administration.

Two U.S. automakers follow closely behind Toyota, however, with General Motors at 18 percent and Ford at 15 percent of the new business. And about 54 percent of top 10 models purchased under the program are manufactured in the United States, according to the figures. The Corolla, Camry and the Honda CR-V 4WD are all manufactured domestically.

"I've always been confused by the 'Buy America' thing when there are plenty of Hondas built in Atlanta," said Neil Kopit, director of marketing at Criswell Automotive which owns Chevrolet, Nissan, Honda and Hummer dealerships in Maryland. "There is a profit leaving and going overseas. But who is it enriching before it goes there? The dealers and the salespeople and the mechanics all live and work in the community."

Designed to revive the economy by stimulating auto sales, the Cash for Clunkers program offers the owners of older cars $3,500 or $4,500 if they turn in their vehicles and buy a new, more fuel-efficient ride. link......