1. C SAN ANTONIO
EXPRESS-NEWS
Saturday, August 22, 2009 mySA.com: Business
BUSINESS
Six Flags outlines its
Chapter 11 restructuring
plan in a court filing.
Page 6C
ECONOMIC GROWTH FOR MEXICO TIED TO U.S. PAGE 3C
The final crush of San
Antonio car shoppers
looking to swap their ja-
lopies for a government-
incentivized ride could
be in for a rude awaken-
ing this weekend as a
growing number of area
dealers continue to pull
the plug on the Cash for
Clunkers program be-
fore it officially ends.
The Obama adminis-
tration announced
Thursday that the wide-
ly popular rebate pro-
gram, which was resus-
citated this month with
a $2 billion infusion
from Congress, would
end Monday. Dealerships
have a 7 p.m. CDT dead-
line to complete any
new clunker deals and
submit the cumbersome
paperwork to be reim-
bursed for rebates under
the program.
But more and more
area dealerships say
they won’t be participat-
ing through the week-
end because of concerns
over hundreds of thou-
sands of dollars in un-
paid claims and a back-
log of clunker applica-
tions that need to be
processed before the
deadline.
“It has created a lot of
traffic for us and a lot of
excitement in the mar-
ketplace, but we have yet
to see any money from
the government,” said
John Starnes, general
manager of Red
McCombs Superior Pon-
tiac-GMC & Hyundai. “It
doesn’t do any good if
you sell a car but can’t
Clunker rebates
harder to find
While some area
dealers anticipate
busy weekend,
others call a halt.
BY DAVID SALEH RAUF
drauf@express-news.net
See CLUNKERS/3C
Jordan Ford is among those still making clunker deals: “We’re going to do everything we can
to honor the program right up until the last minute,” says marketing manager Jerry Strain.
TOM REEL/treel@express-news.net
households still can’t get
fuel the economy, he said.
“Although we have
avoided the worst, diffi-
cult challenges still lie
ahead,” Bernanke told the
gathering of bankers, aca-
demics and economists.
“We must work together
to build on the gains al-
sustained economic recov-
Bernanke declares
growth is in sight

2. SATURDAY, AUGUST 22, 2009 SAN ANTONIO EXPRESS-NEWS 3C
collect the money.”
Starnes said the dealer-
ship stopped making
clunkers deals Thursday
evening but estimates it
sold about 66 vehicles un-
der the program, which
offers a rebate of $3,500 to
$4,500 off the price of a
new car with the trade-in
of a gas-guzzler that will
be scrapped.
Starnes says the gov-
ernment owes the dealer-
ship about $270,000 in re-
bates.
It’s not alone.
At Cavender Toyota,
managers are waiting for
the government to reim-
burse the dealership
more than $400,000. The
Toyota dealership, along
with Saturn of San Anto-
nio, pulled out of the pro-
gram Monday.
That’s relatively late
compared with the Gunn
Automotive family of
dealers, which stopped
taking clunker deals at
its six locations two
weeks ago because of
slow government repay-
ments.
“It remains to be seen”
whether the program was
a success, said Hunter
Hale, president of Gunn
Automotive. “We need to
see if we’re going to be
whole again.”
million, second only to
California, according to
the National Highway
Traffic Safety Adminis-
tration.
But money isn’t the on-
clunker transactions to
process over the weekend
— each one taking up to
an hour to complete.
And at Mission Chrys-
ler Jeep Dodge, the deci-
sion came down to simple
math.
“We don’t have any ve-
hicles left that qualify,”
said owner Ed DeVane.
Monday’s deadline was
set to avoid surpassing
the $3 billion funding lev-
el, given deals that may
be made this weekend
and those that are still in
the pipeline for approval.
Critics say the program
has been a drain on tax-
payers and could steal fu-
ture sales from the indus-
try. But by and large, it
has been hailed by the au-
to industry as a much-
needed lifeline. Industry
sales are at their highest
levels of the year and Au-
gust sales are expected to
jump to a seasonally ad-
justed annualized rate of
about 13 million, accord-
ing to an analysis re-
leased Friday by auto
Web site Edmunds.com.
Analysts at Edmunds
expect a wave of custom-
ers to flood showrooms
this weekend before the
program ends.
That’s good news for
dealerships such as
North Park Toyota and
Jordan Ford, which are
bracing for a rush this
weekend.
“The customers are go-
Jordan Ford is among those still making clunker deals: “We’re going to do everything we can
to honor the program right up until the last minute,” says marketing manager Jerry Strain.
TOM REEL/treel@express-news.net
CLUNKERS
CONTINUED FROM 1C
Ford
Honda
Chrysler
Nissan
Hyundai
Kia
Subaru
Mazda
General
Motors
Toyota 19.2%
17.7%
15.0%
13.2%
8.3%
7.8%
6.8%
3.8%
2.4%
2.3%
Newvehicles
manufacturers
Hybrid vehicles accounted
for 4.5% of new vehicles
purchased under the
program compared to 3%
of all new vehicle sales in
June 2009. A majority (77%)
of those who purchased
hybrid vehicles were trading
in a SUV or truck.
I Top manufacturers of
new vehicles purchased
under the “Cash for
Clunkers” program
Source: National Highway Traffic Safety
Administration
HARRY THOMAS/hthomas@express-news.net
ets of $25 billion
sits of $20 billion.
failed Aug. 14.
Texas, Guaranty’s
s not a surprise,”
d Russell, an ana-
has been in the
industry for 14
Consolidation is
e. We’re going to
r and bigger play-
he banking mar-
”
regulatory filing
Guaranty report-
ld not file its sec-
rther losses on
nvestments. And
businesses and
ds still can’t get
it they need to
economy, he said.
ugh we have
the worst, diffi-
allenges still lie
Bernanke told the
g of bankers, aca-
and economists.
st work together
on the gains al-
ade to secure a
d economic recov-
wing the past
crisis, Bernanke
the many emer-
easures the Fed
r regulators took
ward off a global
meltdown. He
to acknowledge
arguments that
s failed to detect
he crisis before it
— or that Wall
ailouts set a bad
t.
analysts said Ber-
ppeared to be an-
keep his job for
term.
lack of any mea
uggests the Fed
n wants to be
ted,” said Rich-
arone, an econo-
Argus Research.
ou go on an inter-
u never speak of
rtcomings.”
res
ght
PAID ADVERTISMENT
CASH FOR
collect the money.”
Starnes said the dealer-
ship stopped making
clunkers deals Thursday
evening but estimates it
sold about 66 vehicles un-
der the program, which
offers a rebate of $3,500 to
$4,500 off the price of a
new car with the trade-in
of a gas-guzzler that will
be scrapped.
Starnes says the gov-
ernment owes the dealer-
ship about $270,000 in re-
bates.
It’s not alone.
At Cavender Toyota,
managers are waiting for
the government to reim-
burse the dealership
more than $400,000. The
Toyota dealership, along
with Saturn of San Anto-
nio, pulled out of the pro-
gram Monday.
That’s relatively late
compared with the Gunn
Automotive family of
dealers, which stopped
taking clunker deals at
its six locations two
weeks ago because of
slow government repay-
ments.
“It remains to be seen”
whether the program was
a success, said Hunter
Hale, president of Gunn
Automotive. “We need to
see if we’re going to be
whole again.”
As of Friday, 489,269
sales worth more than $2
billion had been logged
under the program. Less
than half those claims
had been reviewed, and
only $140 million of the
claims dealers submitted
had been paid.
In Texas, dealers have
requested more than $125
million, second only to
California, according to
the National Highway
Traffic Safety Adminis-
tration.
But money isn’t the on-
ly reason dealers are
backing out early.
At the Ancira family of
dealerships, managers
held “emergency meet-
ings” Friday morning, af-
ter which most of the
eight dealers decided to
stop participating in the
program after realizing
they still had dozens of
clunker transactions to
process over the weekend
— each one taking up to
an hour to complete.
And at Mission Chrys-
ler Jeep Dodge, the deci-
sion came down to simple
math.
“We don’t have any ve-
hicles left that qualify,”
said owner Ed DeVane.
Monday’s deadline was
set to avoid surpassing
the $3 billion funding lev-
el, given deals that may
be made this weekend
and those that are still in
the pipeline for approval.
Critics say the program
has been a drain on tax-
payers and could steal fu-
ture sales from the indus-
try. But by and large, it
has been hailed by the au-
to industry as a much-
needed lifeline. Industry
sales are at their highest
levels of the year and Au-
gust sales are expected to
jump to a seasonally ad-
justed annualized rate of
about 13 million, accord-
ing to an analysis re-
leased Friday by auto
Web site Edmunds.com.
Analysts at Edmunds
expect a wave of custom-
ers to flood showrooms
this weekend before the
program ends.
That’s good news for
dealerships such as
North Park Toyota and
Jordan Ford, which are
bracing for a rush this
weekend.
“The customers are go-
ing to be out looking for
the deals,” said Jerry
Strain, marketing manag-
er for Jordan Ford.
“We’re going to do every-
thing we can to honor the
program right up until
the last minute.”
The Associated Press contrib-
uted to this report.
Jordan Ford is among those still making clunker deals: “We’re going to do everything we can
to honor the program right up until the last minute,” says marketing manager Jerry Strain.
TOM REEL/treel@express-news.net
CLUNKERS
CONTINUED FROM 1C
Ford
Honda
Chrysler
Nissan
Hyundai
Kia
Subaru
Mazda
General
Motors
Toyota 19.2%
17.7%
15.0%
13.2%
8.3%
7.8%
6.8%
3.8%
2.4%
2.3%
Newvehicles
manufacturers
Hybrid vehicles accounted
for 4.5% of new vehicles
purchased under the
program compared to 3%
of all new vehicle sales in
June 2009. A majority (77%)
of those who purchased
hybrid vehicles were trading
in a SUV or truck.
I Top manufacturers of
new vehicles purchased
under the “Cash for
Clunkers” program
Source: National Highway Traffic Safety
Administration
HARRY THOMAS/hthomas@express-news.net
otal assets of $25 billion
nd deposits of $20 billion.
olonial failed Aug. 14.
“For Texas, Guaranty’s
ailure is not a surprise,”
aid Brad Russell, an ana-
yst who has been in the
anking industry for 14
ears. “Consolidation is
nevitable. We’re going to
ee fewer and bigger play-
rs in the banking mar-
etplace.”
In a regulatory filing
uesday, Guaranty report-
d it could not file its sec-
nd-quarter financial
tatement with the Secu-
ities and Exchange Com-
mission without “unrea-
onable effort and ex-
ense.”
On July 23, Guaranty
eported in filings with
egulators that it was un-
ble to raise substantial
apital and that it would
ot be able to “continue
s a going concern.” It
aid it would continue
working with the Office of
hrift Supervision and
he FDIC as they looked
or potential buyers.
“Guaranty got to the
oint where it had to be
losed by the govern-
ment,’’ Barr said.
In addition to Guaranty,
he FDIC assisted with
hree other bank closures
riday, two in Georgia
nd one in Alabama.
emics and economists.
We must work together
o build on the gains al-
eady made to secure a
ustained economic recov-
ry.”
Reviewing the past
ear’s crisis, Bernanke
utlined the many emer-
ency measures the Fed
nd other regulators took
o help ward off a global
nancial meltdown. He
eclined to acknowledge
ritics’ arguments that
egulators failed to detect
igns of the crisis before it
ccurred — or that Wall
treet bailouts set a bad
recedent.
Some analysts said Ber-
anke appeared to be an-
ling to keep his job for
nother term.
“The lack of any mea
ulpa suggests the Fed
hairman wants to be
eappointed,” said Rich-
rd Yamarone, an econo-
mist at Argus Research.
When you go on an inter-
iew, you never speak of
our shortcomings.”