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It seems that Cash for Clunkers really pulled automakers out of economic troubles and low sales. The manufacturers do not worry any more about sales and are counting the great profits after the program. Ford is so excited about big auto sales that it decided to increase the production by adding shifts to the truck plants in Missouri and Michigan.
The changes will start this fall. At first the company plans to restore the three-shift operation at the truck plant in Dearborn, Michigan to increase the production of F-150 pickup trucks to 10,000 vehicles. This will start in September. A month after that the third shift will come to the plant in Missouri which assembles Ford Escape and Mercury Mariner. Thanks to Cash for Clunkers Escape became one of the top 10 most selling vehicles.
Ford vice president of marketing, sales and service, Ken Czubay thinks that the high demand on Ford vehicles will remain even after the government program is over. So far, July has been the most profitable month in 2009 for the company, but Czubay thinks that August data will be even higher.
Ford expands its work in China by building another assembly plant for 150,000 units a year. The sales of Ford vehicles grew by 30% in the country and this was the reason for building the third facility which increases the total production in China to 450,000 vehicles annually.
Today is the last day for the government program Cash for Clunkers. Although they expected it to last till November, it took only one month to use $3 billion in funding. The U.S. Department of Transportation is going to end the program at 7 p.m. Central time today, August 24.
Cash for Clunkers has great popularity and its funds are thinning out very quickly. President Obama was delighted to hear this news and signed a document which allows extending the program with additional $2 billion in funding.
Cash for Clunkers is up and running, but many believe that it will not last as long as it was supposed to. The arrangers of the program had two limits: either run it till November 1, or till the time the Department of Transportation will run out of money set apart for CARS: $1 billion.