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Monday, 03 August 2009 11:34

Hyundai's Sales Jump 21% in July

Hyundai Motor America today announced July sales of 45,553 units, a 21 percent increase over last month and 12 percent increase compared with July 2008. This marks the seventh consecutive month of year-over-year retail share gains, and another all-time record retail market share performance. Cash-for-clunkers deals accounted for 22 percent of Hyundai sales.

Monday, 03 August 2009 10:20

Dealers Still Pay Tax on CARS Rebates

The CARS act exempts consumers from paying taxes on the rebate. But it does not exempt car dealers.

U.S. Transportation Secretary Ray LaHood said that the CARS program will continue until the Senate votes on an extension. Whether the program continues with an additional $2B in funding, already appproved by the House, will depend on the Senate vote, Dealer rebate applications will be honored at least through Tuesday, Aug. 4.

The "cash for clunkers" program used to require dealers to wreck the engines with a corrosive solution before the dealer could request reimbursement from DOT. Dealers must certify on their rebate applications that they will corrode the engine and ship the vehicle to an approved disposal facility or salvage auction.

The House mobilized in less than 24 hours on July 31, with the Obama administration's help, to draft, introduce, and pass a bill on the last day before they break for the usual August recess. House members formerly opposed to the plan, fell in line due to the huge popularity of the program among dealers and consumers.

Ford surprised observers with a second-quarter profit of $2.3 billion on July 23, barely a year after posting the worst loss in company history. The positive number breaks the string of four straight quarterly losses and is the first positive quarter since first quarter 2008. The profit is due to a reduction in debt and associated expenses.