Have you ever talked to someone who works at gm/f dealership?? my brother in law sold cars for VWin vancouver and made good money, 500-1000 a car PERSONALLY, then came back to our small city where everyone wants a truck, they are selling shit with only like 500-1000$ a truck profit for the dealership, probably less. Salesmen making like 50-100 bucks a car my brother in law had to find new work here cause of it, i used to make more in university selling someone a cell phone than he did on a car.
That is the point I am making, GM is not reucing their retarded MSRP, just the usual discounts. The dealership will not sell for losses, so the most they can discount is what GM will let them. If GM wanted to raise cash, they would lower the sales to the dealerships thus allowing the dealers to lower prices further and clear out inventory. Perfect example, stocktrad3r is holding on to all those massive losers and refused to sell at what the market wanted, now the market continues to fall and he is stuck with a massive inventory of shit that he has priced to high. If he had to pay employees and entitlements, he would really be fucked.
really? My cousin in Oregon just bought a huge F-150, brand new, for what was probably 65% of the total cost a year ago. They ARE giving away the damn things because no one is buying them. Dealers have to purchase the cars from the corporations, and pay interest on them until they sell. If they don't sell, they will then get them out the door any way possible, or they just sit there and suck the dealer dry. The dealer simply does not order more once they get them out the door. The above example is Ford, but I am sure GM is doing the same on their huge vehicles that are not selling at all.
Amazing. These among other expenses are what lead the business, all other factors of the business are secondary. Probably the law/liability dept is larger than the research dept. What if you made more on the financing than the actual product?
GM should merge with F and Chrysler and liquidate. Asian automobile manufacturers would be able to snap up the good assets and put it into productive use.
All GM vehicles are selling at Supplier price plus rebates right now. Supplier is basically invoice. E.G. a $45,000 MSRP Tahoe is $41,000 plus $6,000 rebate. Your price is $35,000. How much do you think GM is making selling vehicles with a discount of more than 20%?
They're getting hit with the perfect storm now: high costs, excess capacity even for the best of times, and now a serious consumer-led recession. These days you're either not buying a car or you're buying a cheap little Honda/Toyota or a hybrid, not an expensive gas-guzzling truck. I do have to wonder what the hell management is thinking. The excess capacity has got to go. It's either bankruptcy now or in 10 months, by then there might not be much left of the companies to save.