The month-long $3 billion US Federal Car Allowance Rebate System (CARS), designed to put 750,000 new fuel-efficient vehicles while taking gas-guzzlers off the road helped drive August auto sales in the US- the best sales seen in 15 months.
 
The Federal CARS programme, which started on 24 July saw sales nearly 7,00,000 old cars taken off the US roads and replaced by far more fuel efficient vehicles with dealers submitting applications worth $2.877 billion before it ended on August 24 morning.
 
Getting a rebate of $3,500 to $4,500 to trade in certain old vehicles for new more fuel-efficient vehicle, more than 6,90,000 Americans availed of the opportunity, which saw overall, US vehicle sales rise 1 per cent in August 2009 from the same period last year.
 
It was the first time that vehicle sales increased year-over-year since October 2007 while industry-wide sales totalled 1.26 million units, reaching the 1 million figure for the first time since last August.
 
''American consumers and workers were the clear winners thanks to the cash for clunkers program,'' said US Transportation Secretary Ray LaHood. ''Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.''

''This is one of the best economic news stories we've seen and I'm proud we were able to give consumers a helping hand,'' added LaHood.

Ford and General Motors recently announced production increases for both the third and fourth quarters as a result of the demand generated by the program. Honda also said it will be increasing production at its US plants in East Liberty and Marysville, Ohio and in Lincoln, Alabama.

The US Department of Transportation said that the program worked far better than anyone anticipated at moving consumers out of old, dirty trucks and SUVs and into new more fuel-efficient cars as 84 per cent of trade-ins under the program were trucks, while cars comprised 59 per cent.

Of the more than 6,90,000 consumers who bought a new vehicle in August, nearly 58 per cent opted for a passenger car over the less-efficient pickup, which is popular with families.