President Obama signed a law in June providing $1billion as a general fund for consumers who trade in old cars for new, more energy efficient models.
The scheme, nicknamed ‘cash-for-clunkers,’ is expected to boost US sales of cars by 200,000 units.
The two car companies under the heaviest scrutiny by the Obama administration, General Motors and Chrysler, have pinned high hopes on car scrappage, with direct mail a favoured channel to explain the scheme to consumers.
Time magazine today reports that while General Motors plans to run ads for its core brands that specifically mention the scrappage scheme, it is also mounting a direct mail campaign designed to explain the programme and drive footfall.
"Our dealers are looking for an uptick in sales," GM spokeswoman Susan Garontakos told Time magazine.
GM is hoping the push will reverse a worrying trend where more than 50% of drivers who have returned leased GM vehicles in recent months have decided not to replace them.
Unlike the UK scheme, car manufacturers do not have to match the government rebate dollar for dollar.
However Chrysler, which has plummeted to seventh place in total car sales in the US, has decided that it will match the federal rebate.
BBDO Detroit has created TV spots featuring three Chrysler brands along with newspaper and radio ads.
The Pasch Consulting Group, which manages a site explaining the scheme called www.CashforClunkersFacts.com, has appointed automotive mail specialist Cubic Marketing to generate and distribute direct mail to consumers and car dealers informing about the new law.
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