•3:16 PM
In an effort to help the dying auto industry, a program was set up by the US government whereby you could donate a car; it was affectionately referred to as a "Cash for Clunkers" initiative. There was a lot of money involved, as people could receive up to $4500 for each of the cars they chose to donate. The "donating a car" program in Canada would only net you about $300 so there was quite a large incentive for US citizens to take advantage of this offer. As a result, the program was ended far earlier than planned due to popularity.
The aim of this program was partially to help get aged and pollution spewing cars off the roads, but largely it was about endeavoring to stimulate the US auto industry. With the Wall Street crash in late 2008, and the ensuing recession, the automobile industry took a substantial blow as shoppers were abruptly facing unemployment and the loss of their homes; the future seemed very depressing indeed. As a consequence, larger purchases, like buying a new automobile, dropped considerably as very few people were willing to take a chance on spending so much money.
The "Cash for Clunkers" program did fire up the US automobile industry, and it also assisted the automobile industries in other countries. Japanese imports saw a big increase as customers took the cash they gained from their car donation, and used it to purchase imported cars. Production of a number of US automobiles that were being manufactured across the border in Canada also saw an increase with the elevated demand and this triggered a boost to the Canadian automobile industry too.
Those who decided to donate a car to help America's sluggish economy probably didn't realize just how much their actions would end up also benefiting other countries. The way the auto industry is set up globally means that so many different parts of this industry interconnect across different nations, such as companies that focus on designing specific parts, companies that are involved in shipping, and many others.
The end of the "Cash for Clunkers" program in the States proved that deciding to donate a car had an impact on the success of the auto industry, not only in the States but in other countries as well. It was a good example of how the world has changed in the last several decades, and that positive change in one nation can truly result in positive change in several other ones as well.
The aim of this program was partially to help get aged and pollution spewing cars off the roads, but largely it was about endeavoring to stimulate the US auto industry. With the Wall Street crash in late 2008, and the ensuing recession, the automobile industry took a substantial blow as shoppers were abruptly facing unemployment and the loss of their homes; the future seemed very depressing indeed. As a consequence, larger purchases, like buying a new automobile, dropped considerably as very few people were willing to take a chance on spending so much money.
The "Cash for Clunkers" program did fire up the US automobile industry, and it also assisted the automobile industries in other countries. Japanese imports saw a big increase as customers took the cash they gained from their car donation, and used it to purchase imported cars. Production of a number of US automobiles that were being manufactured across the border in Canada also saw an increase with the elevated demand and this triggered a boost to the Canadian automobile industry too.
Those who decided to donate a car to help America's sluggish economy probably didn't realize just how much their actions would end up also benefiting other countries. The way the auto industry is set up globally means that so many different parts of this industry interconnect across different nations, such as companies that focus on designing specific parts, companies that are involved in shipping, and many others.
The end of the "Cash for Clunkers" program in the States proved that deciding to donate a car had an impact on the success of the auto industry, not only in the States but in other countries as well. It was a good example of how the world has changed in the last several decades, and that positive change in one nation can truly result in positive change in several other ones as well.
About the Author:
Donating to charity not only does a lot of good for our world, it also makes you feel good about yourself. Many people choose to donate a car to charity to accomplish this. Donating cars is actually a great way to save yourself the hassle of getting rid of your car, while getting a tax receipt that makes up for the money you might have made by selling it.
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