This was predictable: After the end of the “cash for clunkers” program (scrapping incentive) sales of vehicles and parts fell almost back to the lows of the year:

Source: www.TheChartStore.com

Short-term sales incentives bring nothing other than pulling future sales ahead  – with a corresponding hole apprearing later. Large fluctuations in sales / production make it difficult to run production capacities at decent utilization rates.

The car industry could be an example for what will happen to the entire economy once government stimulus is withdrawn.