October 29, 2009
Posted: October 29th, 2009 06:08 PM ET

From
White House fights back on Cash for Clunkers.
White House fights back on Cash for Clunkers.

NEW YORK (CNNMoney.com) - The Obama administration on Thursday lashed out at a prominent critic of its Cash for Clunkers program, arguing that the popular trade-in initiative helped give the auto industry and the economy a much needed boost in the past few months.

In a blog post on whitehouse.gov, the administration argued that a report on Clunkers by automotive Web site Edmunds.com "doesn't withstand even basic scrutiny" and is based on "implausible assumptions."

On Wednesday, Edmunds.com released a study that argued Cash for Clunkers did not have a great impact on the auto industry. The report said that 690,000 new vehicles were sold under the program last summer, but that only 125,000 of them would not have been sold without the Clunkers rebates.

As a result, the report said, the administration's economic claims for the program "have been rendered quite weak."

Full story on CNNMoney.com

Filed under: Cash for clunkers • Obama administration


Jon Krieger   October 30th, 2009 1:05 am ET

We still don't know how much we're gonna have to pay for the "Clunker" in the oval office!

Debbie, las vegas   October 29th, 2009 10:57 pm ET

I took advantage of the Cash for Clunkers program and would not have bought a car without it.

Paul   October 29th, 2009 10:10 pm ET

Why is the Obama White House so much more viciously defensive than even the Bush White House? President Bush's press secretaries and mouth pieces would defend his policies, but you didn't see anywhere near the sharp, defensive fire breathing that comes from Obama's. It's unbecoming of the office of President of the United States.

kenyanborn   October 29th, 2009 10:09 pm ET

SPIN it anyway the ursurper can to look presedential.....he's the forever emtpy suit.

Franklin   October 29th, 2009 10:07 pm ET

No ...it's the propaganda machine at whitehouse.gov that
"doesn't withstand even basic scrutiny" and is based on "implausible assumptions."

WhiteHouse/Federal Government ... I'm calling you out. Your numbers are lies. You lie because you election was based on well funded special interests buying your allegiance.

Bob in Pa   October 29th, 2009 9:57 pm ET

Tha's probably very true. Who goes out to buy a car just because of a discount ? They had to be wanting and able to buy a new car to begin with.

Bill   October 29th, 2009 9:57 pm ET

Obama needs to stop defending this rediculous program of added debt.

All this did was create future months of low car sales and was so ill conceived that we put the USA in debt in support of Japanese companies...... How silly do you feel if you defend this poor attemt at helping the american economy? Why didn't we just ship the cash straight to Japan and send the bill to the middle class workers in the US.

Edmunds is right on...deal with it.

The Party of No More   October 29th, 2009 9:27 pm ET

The more I read about Macon Phillips, the more he reminds me of a left wing Josef Goebbels.

Liberals are Hypocrites (but OF COURSE CNN won't print this!   October 29th, 2009 9:25 pm ET

This entire Obama White House is a CLUNKER!

GI Joe   October 29th, 2009 9:24 pm ET

ha ha ha ha what he means is the hate and fear-mongering republicans have been rendered quite weak ha h ha ha ha ha ha

Emmanuel Goldstein   October 29th, 2009 9:21 pm ET

Now they are attacking Edmunds, a car sales information company that lives and dies on its focus on an industry, for reporting what it observes? Not exactly Fox News guys. This tells me that they will attack and try to silence anyone that disagrees.

And any lib that has the chutzpa to defend this had better not call themselves an american. At least have the balls to man up and come to the village square to support this shameless putsch. We'll be the ones with pitchforks and torches.

2010 can't get her fast enough   October 29th, 2009 9:14 pm ET

Sorry liar in chief, they are right.

First you and your minions underestimated the program and mishandled it and if you did some truth telling since the program ended car sales have PLUMMETED again and those "fake sales figures" are what lead to the GDP growth this quarter (most of it).

You basically took sales from months down the road and compressed them into one month, the only way to save the industry is to change the MODEL, not bribe customers.

Underestimated the unemployment rates as well and also the amount of flu vaccines, and the stimulus bill, Barry, have you gotten anything right?

You lied about the jobs saved as well and BEST estimates have it at $70, 000 for EACH job supposedly saved?????????????

Good payback people?

And you sheep want them or trust them with MY healthcare and MY childrens money in the future?

Not a uh, uh, uh chance.

Perusing-through   October 29th, 2009 8:54 pm ET

Leave it to those nasty, wicked Republican supporters to find away to smear good things done by the Democratic Party. ;-)

Albo58   October 29th, 2009 8:42 pm ET

Cash for Clunkers was a complete bust and it has cost the taxpayers enormously per car!

Mark,B'ham,Al.   October 29th, 2009 8:42 pm ET

No to Cash for Clunkers with more foriegn cars than American cars were bought the rules need to be enforced better and changed to American cars only. Also as was proven all the last giveaway all it did was have people buy cars early. Stop the giveaways and bailouts four all. Also stop the tax break for home buyers with kids, illegal immigrants,and ineligable IRS workers getting tax credits needs to be enforced or stopped. If the government cannot stop the fraud in these programs does America really believe the government can stop fraud in Medicaid and Medicare?

BS TALKS   October 29th, 2009 8:36 pm ET

Not just a boost for the auto industry but also got some gas guzzlers off the road.

Reducing the dependence on foreign fuel.

Democrat   October 29th, 2009 8:34 pm ET

This administration is full of a bunch of liars. I just read an article put out by the AP about how they lied about how many jobs were created by the stimulus. That's to bad for the AP because now they too will no longer be an news organization.

Dennis   October 29th, 2009 8:19 pm ET

Sales of cars dropped off dramatically after the program ended. In the long run, the auto industry is still having a very bad year. So I don't know how it can be considered a success. Just a lot of red tape for the dealers.

JP   October 29th, 2009 8:15 pm ET

It doesn't make sence to destroy a perfectly good asset and call it a success. Lets give everyone a $250,000 tax credit to burn down their house and have it rebuilt that will create jobs. I am sure people who can only afford used cars don't call this a success because it raises the price of used vehicles because there are less of them.

Peter s   October 29th, 2009 8:09 pm ET

Only the most stupid can question the cash for clunnkers program!!

terry,va   October 29th, 2009 8:06 pm ET

I can't wait for the tax breaks on pets that is pending in congress now as my sons have left the nest. They will being paying for all this nonsense. I'm glad they are Medical Doctors. They can afford it unless the socialized medicine program congress is trying to pass limits their pay to what a McDonald's worker gets. What a country!!!

Democrat   October 29th, 2009 8:02 pm ET

I believe the report also said that US taxpayers ended up paying about $25,000 per vehicle. Another government waste, can't wait till they run healthcare. :) Im sure they clean up their act by then.

tonyt   October 29th, 2009 8:01 pm ET

Hey Edmunds key words to study.
" implausible assumptions"

tonyt   October 29th, 2009 7:59 pm ET

Go Study Health Care

The War, 20,000 more troops or 50,000 will get it done

You Have any Home Sales Stats.

tonyt   October 29th, 2009 7:56 pm ET

Dumb!
How Do You Know. Where's the proof!
Please Give Me Tomorrows Lotto Numbers!

Wise Latina   October 29th, 2009 7:55 pm ET

Only the arrogant and unabashed O'ministration could "fight back" against overwhelming evidence that the government overhead contributed to an obscenely bloated "Clunker" initiate. Another Big Goverment flaming failure. Just wait until we get Government-run Insurance and Health Care. YIKES!!!!!!

It's far cheaper to simply hand out money – like in tax reductions! Works every time its tried...

Anonymous   October 29th, 2009 7:55 pm ET

DUMB!

125,000, How do you know?

Please Give Me Tomorrows Lotto Numbers!

dan smith   October 29th, 2009 7:54 pm ET

All of obama's policies are weak,nothing new about that. Don't know if jimmy carter was even as lame is this buffoon is. How in the world did we ever elect this moron.

roger   October 29th, 2009 7:48 pm ET

It seems that the main effect of the cash for clunkers was to inflate the prices of older used vehicles! This helps the sellers, but hurts the buyers, many of whom are lower income!

File under "Sarcasm"   October 29th, 2009 7:44 pm ET

"Quick, someone is disagreeing with our Administration's hyperbole. Let's ridicule and stamp out those evil people."

JAWBREAKER   October 29th, 2009 7:43 pm ET

The only people this helped was illegal aliens. the mexicans were able to turn in their jalopies and then skip back across the border. Wake up America! Stop saying how thankful you are to have such a president. He is a fraud, liar, hypocrit, and coward. Things are messed up when those are the virtues some americans cherish. We need Bush back, bad!

Idiot_Pelosi   October 29th, 2009 7:39 pm ET

Cash for Clunkers was a "OK" idea. It was not the huge success the WH likes to take credit for, but it was a somewhat reasonable bailout attempt.

Marty, Grand Rapids MI   October 29th, 2009 7:26 pm ET

Not sure what people are complaining about. This was the most effective stimulus programs they had.

David   October 29th, 2009 7:21 pm ET

Even if some of the cars would have been sold anyway the result would have been a finacial incentive for the purchaser which is a form of direct stimulous to the taxpayer.

terry,va   October 29th, 2009 7:21 pm ET

Another fine example of our government at work. The credit of $4,000 per car to qualifying buyers cost the taxpayers $24,000 per car. Our government couldn't run a one car funeral and they want to run our health care system!!!! If the idiots had to pay for all the overages on their programs, they wouldn't invent them.

Illinoistom   October 29th, 2009 7:14 pm ET

The farcical Cash For Clunkers program illustrates two things: 1 Tax cuts work to stimulate economic activity, and 2 our government can't even run a simple rebate program without screwing it up royally.

Tom   October 29th, 2009 7:13 pm ET

Is anyone really surprised that a goverment program or policy fell way short of expectations? I'm not.

m smith   October 29th, 2009 7:12 pm ET

Any help is better tan no help. The idea that the administration keeps trying to help the economy shold make people hopeful. I guess we could just sit around and wait like the repos want. We are fortunate to have a whit house that is progressive rathet than the party of No

Cliff   October 29th, 2009 7:12 pm ET

Even here in the "Golden" state you see far less Obama bumper stickers.
Now I know where they went!

Suzan   October 29th, 2009 7:08 pm ET

Don't tell me this is a company that supports the Republicans........you can smell the stench from where I sit.......

Bassman   October 29th, 2009 7:08 pm ET

This was nothing more then a give -away for the upper middle class. Rather then give $4,000. for a new car, the bill should have given $2,000. to twice as many people to buy used cars. It would have helped lower income people trying to get by. Some may have been able to drive to work. As it turned out as soon as cash for clunkers stopped, so did new car sales.

Damian from Boulder   October 29th, 2009 7:02 pm ET

Edmunds.com should look at this fact: With 690,000 more fuel efficient cars on the road, how much less dependency on foreign oil did we achieve. The Cash for Clunkers program not only provided stimulation to a very stale auto-market, but also reduced oil dependency. It's a start. It's a positive step in the right direction. That's a lot more than I can say for Edminds who has overvalued gas guzzlers for how many years now?

Gerry   October 29th, 2009 7:02 pm ET

So our government our tax dollars 13.560 billion so that people that are working could by a new car. It looks like the government knows how to bury us.

Gerald Huber   October 29th, 2009 6:57 pm ET

The White House Staff continues to "lash out" and anyone and everyone who challenges or criticizes the Obama Administration. Are we living in the age of the "Pennsylvania Avenue Bully" operating under the montra of the Chicago Political Thugs. Cash for Clunkers was another BS give-away program that was ill-conceived and poorly handled. Why can't they accept failure and move on to their next "save the world" initiative? Edmunds.com presented a good analysis of the C for C program and the Administration doesn't like it - but that does not make Edmunds the bad guy.

old timer   October 29th, 2009 6:57 pm ET

Someone will have to pay for those cars that were bought under this program. Wait six months to a year and see how many loans will foreclosed on. This was a bad idea

Chris - Seattle   October 29th, 2009 6:53 pm ET

Cash for clunkers and the benefit or lack there of, is but a fart in the wind! Lets start talking about how globalization and outsourcing of American jobs is killing the American middle class, the planet and people, all in the name of global capitalism and corporate greed...any takers? Huh, I can't hear you......crickets.......come on you right-wing conservative obamahater zealots, lets start a dialogue about that! CNN, MSNBC, FOX, blogosphere...anybody!

Ryan   October 29th, 2009 6:52 pm ET

Look, I'll I know is that there are 4...that's right 4 brand new cars on my street alone that came out of this Cash for Clunkers thing. That combined with the amount of ad money that locally dealers spent to help promote it on radio and TV is enough to tell me that the program was a success.

Deuce   October 29th, 2009 6:51 pm ET

Sombody want to buy Barack Obama???

WEB Dubois   October 29th, 2009 6:50 pm ET

He should of gave a rebate for appliances as well as for cars. This waa as it appears a Tarp funding again.

Bob of Lompoc   October 29th, 2009 6:50 pm ET

Everyone I know who took part ion the plan came out smelling like a rose – as did the Government, since junk autos have been taken off the street. Just another example of Rethugs stepping on each and every thing President Obama tries to do. The latest I heard is that only 20% of Americans will admit they are Rerpublicans. Enough said.

Ken in NC   October 29th, 2009 6:44 pm ET

Edmunds.com claims sales were only 125,000 cars but the economy also had additional junk business to see massive increases in their business,,,,,,,,stimulus. While this Clunker Sale was taking place, the economy was getting into position to star making a turn around and according to GDP our economy has started to grow. Now I know part of that growth is from the Clunker Sales but there is now some growth to our economy and the Clunker Sale was part of what helped to carry our economy until it was able to start it's own growth again.

bob in LA   October 29th, 2009 6:43 pm ET

Good for them! What has this country become when speculative reports become news? The report of 24,000.00 per card or 125,000 in sales was based on assumed figures by the group and no rela fact.
Unfortunately in the next few days the Obama haters will have it out there as fact in an emial campaign to disparage any good done byt the CFC program.

New Father   October 29th, 2009 6:42 pm ET

How dare they disrespect the prez, call them out, threaten them, and say they aren't real car salesman. I can't believe how anyone can question this Democratic run country. Look how good we have done since 2007 when Dems took control, first Obama voted all the new spending into law and than this year he inherited this mess, from himself . Only what 7+ million jobs lost, debt only up a trillion plus, but hey this cash for clunkers program has been very sucessful for Toyota, Honda, and other foriegn companies. Obama should get an award for this like a Peace Prize or something.

mjm   October 29th, 2009 6:42 pm ET

The White House LOOOOVES to shot the messenger, don't they?

They love to "call out" everyone else, but when someone calls them out...Forget it. That's why they hate Fox News, they can't stand it when someone calls THEM out.

Edmunds.com isn't political in any way. They just reported the facts as they saw them. Cash for Clunkers was NOT the success the WH claimed.

Same thing happened with the jobless report. Only 30000 jobs created? Give Barrack a cookie. Now we find out that they overstated the job creation by a couple thousand.

Way to go Dems! You're really burn'en up the joint!

OldUncleTom   October 29th, 2009 6:40 pm ET

Well, figures don't lie, but Liars figure.

Who is Edmunds.com, and who paid for their study? Why should I not toss their views in the same trash bin I have reserved for Rasmussen?

Anybody?

Bull   October 29th, 2009 6:39 pm ET

This administration hates it when somebody dares to disagree. Therefore, I think it a good idea to disagree.

1. It keeps them occupied and keeps them away from doing things that would be really damaging.

2. The only vetting of their plans seems to occur after we point out their errors. Obviously none of them actually bother to read their own plans before the are made public.

joe m   October 29th, 2009 6:38 pm ET

i guess Edmunds is the latest member of the administartion's enemies list.

Paul   October 29th, 2009 6:33 pm ET

What lies? All I heard from this story was that Palin Lied, but the DNC did not give evnen one example, If she lied tell us about what she said and howm it was a lie.

Claiming others lie because you disagree with them is childish, prove your statement or stay at home..

Jerry   October 29th, 2009 6:33 pm ET

Why is the White House fighting Edmunds.com? I've never heard of them and it doesn't seem like an important site. Doesn't Obama have better things to do. It seems he just can't take criticism. What a cry baby.

Amazing   October 29th, 2009 6:29 pm ET

Spending tax payer dollars is NOT helping the economy, it is costing us all more in taxes. Why not give everyone 50,000 to buy a house, that would help the housing market, realtors, appraisers, etc? Not only was cash for clunkers a waste of our hard earned money, they blew it by not mandating the purchase of an AMERICAN car only. No Toyotas, Hondas, etc. This administration is so clueless when it comes to stimulating the economy. Get the private sector hiring more people to pay taxes............it's not rocket science, just common sense, which is missing from Obama and company.

Paul Cooper   October 29th, 2009 6:21 pm ET

So a program that lasted for less than two weeks gave months worth of boost?

Do these people even think before they speak?

Four and The Door   October 29th, 2009 6:12 pm ET

Did Edmunds take into consideration the sharp improvement in the Japanese economy because of Cash-For-Clunkers? Does that not count for something? Okay, maybe not.

Comments have been closed for this article

subscribe RSS Icon
About The Ticker

The latest political news from CNN's Best Political Team, with campaign coverage, 24-7. Sign up for our twice daily Ticker emails. Got a news tip or feedback? For complete political coverage, bookmark CNNPolitics.com.

CNN=Politics Screensaver

CNN=Politics ScreensaverTap into the power of The Situation Room. Download this powerful new tool that keeps you posted on the latest political news from the campaign trail.
Download (4.1 MB, PC only)

twitter
@CNNPolitics: RT @AliVelshi: WOW - unemployment DOWN to 10%, and only 11,000 jobs lost in November! Have we turned a corner, or is this a blip?
Updated: Fri, 04 Dec 2009 05:37:22 -0800
@CNNPolitics: Democrat: 'Ask Tiger, not me.' http://bit.ly/91yP9m
Updated: Fri, 04 Dec 2009 04:23:42 -0800
@edhenrycnn: http://twitpic.com/s1eyz - Courage, Dan Rather
Updated: Thu, 03 Dec 2009 17:34:04 -0800
@edhenrycnn: http://twitpic.com/s1ero - Pretty good likeness of King of Talk @kingstings
Updated: Thu, 03 Dec 2009 17:32:37 -0800
@edhenrycnn: http://twitpic.com/s1eeq - Found Tiger Woods -- wax version at Madame Tussaud museum in DC.
Updated: Thu, 03 Dec 2009 17:30:17 -0800
Categories
Powered by WordPress.com VIP