Researcher: 'Clunkers' Program Boosted Auto Sales

MUNCIE, Ind. (AP) — A Ball State University researcher who analyzed the federal government's Cash for Clunkers program says it fueled a spike in auto sales over the summer.

Michael Hicks of Ball State's Center for Business and Economic Research analyzed the program, which cost taxpayers nearly $3 billion to provide rebates of up to $4,500 to people who traded in old, inefficient vehicles for gas-thrifty new ones.

His analysis shows that of the 690,000 autos sold under the Cash for Clunkers rebate program, all but 3,000 to 5,000 would not have been exchanged without the rebates.

Hicks says the program created an immediate boost to the auto industry, which is important to Indiana as well as much of the manufacturing-centered Midwest.