Cash for Clunkers generates 700,000 new car sales

WASHINGTON — The U.S. Transportation Department says the popular Cash for Clunkers program generated nearly 700,000 new car sales and came under the $3 billion budget for the monthlong program.

The government said Wednesday dealers submitted 690,114 vouchers totaling $2.88 billion in the program, which ended Tuesday.

Japanese automakers Toyota ( TM – news – people ), Honda ( HMC – news – people ) and Nissan ( NSANY – news – people ) accounted for 41 percent of the new vehicle sales, outpacing Detroit automakers General Motors ( GMGMQ.PK – news – people ), Ford and Chrysler, which had nearly 39 percent.

The Toyota Corolla was the most popular new vehicle bought under the program, followed by the Honda Civic, Toyota Camry and Ford Focus.

The car incentive program offered consumers rebates of $3,500 or $4,500 to trade in an old gas-guzzler in exchange for buying a new car.

Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed