With automotive industry sales off by 32% for the year to date, the “clunkers” program has boosted July sales to only a 12% decrease. The $1 billion fund originally created for the “clunkers” program was depleted in the first week with dealers submitting 245,000 applications to the federal government for approval. Congress added an additional $2 billion last week which caused Ford to increase its production of the fuel-efficient Escape and Focus vehicles. Because of the popularity of these two models Ford has increased its market share and actually showed a sales increase of 2% for the month of July compared to the preceding year. General Motors has also announced that is considering an increase in production for the fourth quarter and has informed its suppliers to expect an increase of fifty thousand or more units.

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