Autonation is the largest car dealer in the US. The head of Autonation says that auto sales have stabilized with the “Cash for Clunkers” program. But has that cannibalized new auto sales when the economy recovers? It has improved gas mileage, by ten miles per gallon, and air quality for the cars that it has taken off the road. Would the higher quality buyers coming in have gone to new dealerships in a few months? Maybe the program has smoothed car demand which would be good for Detroit.
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