Well that didn't take long. Only months after getting a stay of execution, cost conscious and always timely General Motors is using a self-described "uptick" in sales on the heels of cash for clunkers to fire up production (and overtime pay) to prepare for the furious recovery in the auto market. While economists debate meaningless things like unemployment, availability of credit, and income growth, the government's auto prostitution program was all auto consulting firms and the new GM needed to see to flip the switch back to the 'overproduction' position.
"They're probably seeing some demand that goes beyond what they would deem a boost just from cash-for-clunkers," said Erich Merkle, president of Grand Rapids, Michigan, consulting firm Autoconomy. "There are signs this economy is going to improve fairly quickly."
And on a related note:
The dramatic jump in auto sales attributed to the "cash for clunkers" incentive program is fading fast, according to Edmunds.com, which said automotive purchase intent slid 31% from its peak in late July
Who says lightening never strikes the same place twice?