'Clunkers' critique draws fire from White House

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By William Ehart

The White House lashed out again Thursday at a media outlet, calling the automotive site Edmunds.com "wrong (again)" for saying that the "cash for clunkers" program cost too much money and had little lasting impact on car sales or the economy.

Jeremy Anwyl, chief executive officer of Edmunds.com, said he was "shocked" by the administration's reaction and said it ignored his auto research firm's other conclusion that the industry is recovering faster than analysts think.

"I think they've got their B team responding," Mr. Anwyl said. "I know there are smart people at the White House, but I don't think they're blogging today. Why are they even messing with this? We're talking about the White House.

"I feel like Joe the Plumber," he said.

Edmunds.com said Wednesday that it cost taxpayers $24,000 to spur each car sale beyond what would have occurred anyway.

About 690,000 cars were sold under the hugely popular program, from late July to late August, at a cost of $3 billion. Congress agreed to increase funding based on the heavy response.

The initiative was designed to boost car sales and reduce emissions, as rebates of up to $4,500 were available to those buying more fuel-efficient vehicles.

No one argues that some portion of "cash for clunkers" buyers were already planning to buy a car at some point this year or next. Therefore, hundreds of thousands of Americans got stimulus checks from their fellow taxpayers for making routine purchases.

But analysts differ on how many car buyers fit in that category.

Edmunds.com estimates that only 125,000 cars, or 18 percent of the total sold during the program, can truly be tied to "cash for clunkers" incentives. The auto information site based its analysis on a study of factors such as actual sales and pre-existing sales forecasts. The analysis excluded luxury cars and other vehicles ineligible for the program.