Ford reported its first sales gain in 20 months, thanks to the U.S. government's "cash for clunkers" rebate program that gives consumers a rebate of up to $4,500 to trade in older cars for new and more fuel-efficient models. Other manufacturers said their continuing sales declines would have been worse without the program. All in all, the officially named Car Allowance Rebate System (CARS) provided taxpayers with a good return on their investment, Wharton management professor John Paul MacDuffie says in an interview with Knowledge@Wharton. But, he adds, the auto industry -- most notably GM and Toyota -- have a lot of work to do to prepare for a marketplace transformed by the financial crisis and growing demand for fuel efficiency.
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