Learning can be done in many different ways. One way is by looking at other people and seeing what has worked and made them successful. While the world economy continues to be in the dumps, European car sales are on the rise, and in a big way. Car sales in Europe have jumped to 13 million units. What has made this kind of impact in a down economy?
Cash for Clunkers.
In Europe you can trade in your used car for a voucher. This voucher can be used towards the purchase of an energy efficient automobile. A similar proposal has been brought up in the United States. But, can this work?
This might work as new vehicles are coming up for the 2010 and 2011 models. An example: a 1995 Ford Contour gets slightly over 20 mpg. To replace it with a similar 2010 Hybrid Fusion would be a good deal. The new Fusion gets 42 mpg. The problem will be with some of the bigger cars. Do they have an equivalent that will get the same doubling of gas mileage?
Another aspect of proposed bills is that it will only apply to American automobiles. This is somewhat curious, yet at the same time makes perfect sense. It is curious because many Honda and Toyotas are made almost wholly in the United States. Of course the big three are hurting the point of near bankruptcy.
This bill could prove huge for some of the smaller companies. Companies like Aptera, Tesla and Phoenix Motors could possible use these vouchers to get great publicity for their all electric cars. Whatever the case, it looks like cash for clunkers could be coming to a dealership near you.
