Heavy Cash for Clunkers demand has prompted the Obama administration to extend the federal rebate program to cover vehicles that are in the production pipeline, rather than just those in showrooms. Both Ford and Chrysler say that a number of their plants are working overtime to boost production for the program, which has consumed nearly $1.5 billion in rebates so far.
Yesterday, Ford announced that it was boosting Focus, F-150 and Escape production immediately and now it says that it will soon increase production of the Ranger pickup in St. Paul, Minnesota. Chrysler also confirmed that “nearly all” of its assembly plants would be working overtime over the next month, as well.
As of yesterday morning, the government had received $1.42 billion in voucher requests and Ford ’s chief economist predicted that the program would sell between 700,000 and 750,000 vehicles overall – from all automakers whose cars qualify – before funding ran out.
Some controversies have arisen, however, since the program has sold an undisclosed number of gas guzzlers. As long as buyers trade in pickups or large vans that achieve at least 2 mpg less than their intended purchase, they’re eligible for rebates. The government hasn’t released a list detailing just how many large trucks have been purchased, but dealers across the nation are reporting strong demand for certain configurations of trucks like the F-150, Dodge Ram and even the Hummer H3T.
