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GM loses twice both in service work and sales which may have gone to them if a $4500 incentive wasn't there to buy a more expensive Honda or Toyota. Cause some people will buy crap if it's the only thing they can afford..
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So your position is that people should be forced to buy crap?
You should be comforted that the socialist takeover of of the auto companies by our government will result in cars that are fuel-efficient and that sell.
Cash for Clunkers is a resounding success. Car dealers have had their best quarters in years. They are running out of new cars - thus the manufacturers have to gear up production. That creates and keeps jobs (the Taurus is coming back, btw) and spreads throughout all the manufacturing and ancillary segments that supports the auto industry (railroad and OTR transport, plastic companies, steel companies, etc)
Crappy old cars that don't get good gas mileage and cost people alot in repairs (you pointed that out) are off the road in favor of new, more mileage-efficient cars that put more money in the pockets of people that own them, year after year, in lowered gas and repair costs.
I see no reason to get angry, as you did, about people buying cars that will break down less, and cost their owners less money as a result. Gives people alot more money in their pockets to spend and help the economy recover.
And those cars are manufactured in the US, thus providing jobs, jobs, jobs.
And as Scuds pointed out, and a major goal of the clunkers program, was that we use less oil as a country, a very good thing, keeps us less dependent upon foreign oil and keeps the cost down by keeping demand down.