Planet Gore

Edmunds Reacts to Its Presence on Obama’s Enemies List

Edmunds corporate has issued this press release:

SANTA MONICA, Calif. — October 29, 2009 – Today the Department of Transportation and White House chose to respond to an analysis Edmunds.com released Wednesday that looked at auto sales this year and what sales volumes would have been had the popular Cash for Clunkers program never existed.

At issue is one point of the analysis showing the taxpayer cost for every incremental vehicle sold was $24,000. To be clear, Edmunds.com is not disputing the government’s statements regarding total voucher applications, vehicles sold or voucher values. The key question is how many of these sales would have occurred anyway.

Apparently, the $24,000 figure caught many by surprise. It shouldn’t have. The truth is that consumer incentive programs are always hugely expensive when calculated by incremental sales — always in the tens of thousands of dollars. Cash for Clunkers was no exception.

The White House claims that our analysis was based on car sales on Mars and that on Earth, the marketplace is connected. We agree the marketplace is connected. In fact, that is exactly the basis of our analysis.

It is also claimed we missed the possibility that Cash for Clunkers generated excitement and consumers bought vehicles even if they didn’t qualify for the program — a claim that has been widely supported by anecdote but by little analysis. It does, after all, seem a bit odd that masses of consumers would elect to buy a vehicle because of a program for which they don’t qualify — doubly so when you add in the fact that prices shot up during Cash for Clunkers, creating a disincentive to buy.

Finally, the White House claims that the increase in fourth-quarter production reported by the car manufacturers can be attributed to Cash for Clunkers. But here is a better reason: the economy is recovering accompanied by improved car sales. No manufacturer increases production — a decision with long-term consequences — based on the 30-day sales blip triggered by an event like Cash for Clunkers.

With all respect to the White House, Edmunds.com thinks that instead of shooting the messenger, government officials should take heart from the core message of the analysis: the fundamentals of the auto marketplace are improving faster than the current sales numbers suggest.

Isn’t this a piece of good news we can all cheer?

About Edmunds.com, Inc. (http://www.edmunds.com/help/about/index.html)

Edmunds.com, Inc. publishes four Web sites that empower, engage and educate automotive consumers and enthusiasts. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value® , is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named “Best Car Research Site” by Forbes ASAP, has been selected by consumers as the “Most Useful Web Site” according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated “#1″ in Keynote’s study of third-party automotive Web sites. Inside Line launched in January 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in February 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.

Most Popular

Culture

Ezra Klein’s Intellectual Demagoguery

Ezra Klein wants you to know that he doesn’t think Sam Harris is a racist. “I’m not here to say you’re racist, I don’t think you are,” Klein explains in a two-hour debate with Harris on the latter’s podcast, Waking Up. “We have not called you one.” No, not at all. Klein is telling the truth ... Read More
Education

The Scholarship/Activism Balance — A Rejoinder

The Martin Center recently published an article by sociology professor Fabio Rojas, in which he argued that professors should maintain the right balance between their teaching and scholarship on the one hand, and activism on the other. In today's article, the Center's Jay Schalin pushes back somewhat. Schalin ... Read More
U.S.

The Book Comey Wanted to Write

Making the click-through worthwhile: the book James Comey had wanted to write, Facebook starts to feel useless to some writers, an infamous D.C. city councilman manages to make everything worse, and Hillary Clinton’s campaign finds its wish granted. What Did James Comey’s First Draft of A Higher ... Read More
Film & TV

Pro-Life Feminist

My paisana at the Human Life Review are hosting an event in NYC on Thursday, May 3, at the Sheen Center (18 Bleeker Street) for the airing of director Jim Hanon’s half-hour documentary, Pro-Life Feminist. After the viewing, he’ll join the trio of castmates -- Destiny Herndon-De La Rosa, Aimee Murphy, and ... Read More
Politics & Policy

Good News for Pompeo

Looks like he's in, as he should be. https://twitter.com/TomCottonAR/status/987050849317867521 But this fight has been a hint of what life will be like for Trump if the Democrats somehow take the Senate -- they'd refuse to confirm anyone for anything. Read More