CARS, the Biggest Boost in Sales on Record
A preliminary market analysis submitted to the government shows the gross domestic product (GDP) of the United States will be 0.3 to 0.4 percent higher at an annual rate thanks to CARS.
"The program is expected to boost GDP when we need it in the short run," the statement, quoted by Autonews, said. "Any offsetting effect on GDP in future years is expected to be gradual."
What follows however is anybody's guess, despite officials assuring the increase "will be sustained in the fourth quarter" by manufacturers, who will increase production to refresh the depleted inventories. Additionally, the program will indirectly generate 42,000 jobs in the second half of the year. So far, two of the countries biggest carmakers, Ford and GM, already announced plans to increase production and "refuel" dealers.
The biggest gain however is, according to the White House, the environmental impact the program will have in the long run. Alongside visible benefits, like improving fuel consumption and CO2 emissions, the program will eventually help carmakers meet the new mileage and emission regulations recently approved in the US.
The effects of the program have expanded well beyond its initial target. While CARS itself ended this week, it spawned the Auto Stimulus Plan, a privately funded trade-in system, which will continue to run following about the same guidelines as CARS.