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Tweety Tweety (Member) Expert Nurse

"Cash for Clunkers" good news to automakers.....

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This may have generated many sales, but many dealers pulled out because the government has so slow in sending them their reimbursements...which should come as no surprise...the government being inefficient? Who knew? Of course, we all should know that by now.

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Watch how efficient the government will be when they want their tax for the sales! Meanwhile, the auto dealer sits and waits for the reimbursement....

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Its great that cars are selling again but the regulation on the program is questionable. Why can someone trade in an SUV on a new one? Shouldn't there be some regulation on the size of the new car. It is more efficient now but in a few years gas efficiency naturally falls on a car and we will be no better off.

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I thought the good news was for foreign automakers, who make up the majority of the most popular purchases under the program.

Neither GM or Chrysler, the bailout companies, had a vehicle on the top 10 list.

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Cash For Clunkers is sooo bad... GM increases production, rehires workers.

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Killing engines is his business, and business is good

Rachel Maddow interviews Hans Blatter, president of Castle Productions, whose The Clunker Bomb, is used to kill the engines of traded-in cars.

From transcript:

MADDOW: As we reported earlier this week, GM says that it's upping the production schedule by tens of thousands of cars for this year to cope with the increased demand from Cash for Clunkers. That means they're rehiring more than 1,300 North American employees to boost production in the third and fourth quarters. That also means overtime checks for more than 10,000 GM workers who have held on to their jobs.

Ford also announced last week that it will increase production for the last half of the year by 26 percent over last year's numbers. Oh, and Hyundai is rehiring, too. And in response to increased demand from Cash for Clunkers, Hyundai says it is now able to return about 3,000 of its employees in Alabama to full-time schedules after their hours had been cut last fall.

So in sum, we've got tons of new consumer-spending as we're trying to get out of a recession. We've got consumers really happy. We've got car dealers with tons of new business, not to mention the scrap yards for the clunkers. We've got less pollution, less gas consumption, workers getting rehired at the auto companies. Seems like this is working out kind of great. So why are they ending it? Why don't they just extend this thing again?

Joining us now is Hans Blatter. He's president of Castle Products, a family owned automotive supply business that is also booming, thanks to the Cash for Clunkers program. This company makes a product that they call the Clunker Bomb which permanently paralyzes the engines of clunkers traded in under the Cash for Clunkers program. Mr. Blatter, thanks very much for being here.

HANS BLATTER, PRESIDENT, CASTLE PRODUCTS: Thank you for having me. It's great to have all this positive news.

MADDOW: You know, there's not much positive economic news ever. And this really has been a positive story. But I've got -

BLATTER: It's been very fun for our company.

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MADDOW: I understand that you've hired new employees because of the demand for this product because it meets the government's needs in terms of this new program. Do you think that you're going to be able to keep these new employees on when the Cash for Clunkers program ends?

BLATTER: Well, right now we have plans to keep them on. It's really been a great benefit to our company in times of needing some good news and in some good boosts to the economy. The Clunker Bomb has helped us open up various doors to dealerships that we weren't servicing before and in the various parts of the country that we weren't before. So we're hoping that with the positive news of this Clunker Bomb, we can get some additional business that will enable us to keep the additional step that we brought on.

MADDOW: I know do you work closely with dealerships of a lot of other businesses. Obviously, this has done wonders for your morale at your company. But what can you tell me about the other businesses that you work with and the dealerships? How is their morale and how are they doing because of this program?

BLATTER: Well, I think the morale, overall, people want positive news. It's nice to turn the TV on, the news and the newspapers and see the positive news out there. You spoke in the intro about the dealerships running out of cars, showrooms being swamped with people wanting the vehicle and wanting to take advantage of this program.

And then the scrap yards - the scrap yards are getting these vehicles. They're getting - and sometimes some good vehicles, some good seats, some good doors, lights, et cetera that then they can use and resell to the people that don't qualify for the program.

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What about the auto dealers, who are wondering when (if) they'll be reimbursed?

What about all the people who have unwisely taken out new car loans that they can barely afford in this economy?

While there may be winners (the auto makers), there will definitely be losers....wait and see.

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