'Cash For Clunkers' Program Could Boost Hummer

July 23, 2009

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July 23, 2009

The government's so-called "cash for clunkers" program goes into effect Friday. People who trade in their gas guzzlers for more fuel-efficient cars can get a government subsidy — even if they trade in old pickups for ones that get just 2 miles per gallon more. Which means the program could provide an unexpected boost to the beleaguered Hummer brand. Its H3T pickup gets 16 mpg.

STEVE INSKEEP, host:

Tomorrow the government's so-called Cash for Clunkers Program goes into effect. The government is giving away cash to encourage people to buy new cars. They're supposed to be more efficient cars too. Chrysler is hoping to get a jump on sales by saying it will match the government's offer of up to $4500 to people who trade in their gas guzzlers for more fuel efficient vehicles.

The government is giving this subsidy to people even if they trade in some old Pickup truck for another vehicle that gets two miles per gallon more, which means the program could provide an unexpected boost to another troubled brand. And our last word in business today is cash for Hummers. If you're cruising around in a gas gulper that gets just 14 miles per gallon, say, you can receive the money from the government, if you're to trade it in for a Hummer H3T pickup, which gets 16 miles per gallon - federal subsidy for that.

That's the business news on MORNING EDITION from NPR News. I'm Steve Inskeep.

LINDA WERTHEIMER, host:

And I'm Linda Wertheimer.

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