Gm makes an intelligent move? Wow.

Rob · 01-10-2006, 02:30 PM

http://www.chevrolet.com/m/06/060110_press_release.pdf

Looks like this includes the Corvette.

01-10-2006, 02:39 PM

First we get the article from a GM exec saying the family pricing was bad now this?

http://forums.carmudgeons.com/showthread.php?t=6351

ff · 01-10-2006, 02:43 PM

Sounds like a going out of business sale to me.

Rob · 01-10-2006, 02:49 PM

Sounds smart to me. They have trained their customers to wait for their big promotions, cash back, and "employee discount" sales. Now they are saying the cars are good and a value and maybe the shopping experience will be easier. Or maybe they will just get msrp instead of a reduction now (I doubt it). But this is smarter than jumping from sale to sale.

Mercedes did the same thing somewhere in the past - lowered the invoice to msrp markup to 8% and told the dealers to live with it. Some of them even do. I haven't notice it hurting their sales.

01-10-2006, 03:39 PM

Hummer not included?

blee · 01-10-2006, 04:40 PM

Finally, they did it. This has been rumored for a year or so, IIRC. I predict this will have little impact on the actual price paid for most of these cars, and GM is probably predicting the same. The idea here is to reduce the customer's expectation that they will be able to buy a GM vehicle for multiple thousands off of the MSRP.

As mentioned elsewhere, there is also a big push to educate the customer on the quality of GM vehicles. If both of these efforts are successful, then perhaps GM will be able to sell their cars without resorting to insane rebates and 0% financing all year long. Then, in a few years, new models will come out and customers will not automatically expect to pay $1000 under invoice for them...but they'll show up to buy anyway.

lemming · 01-10-2006, 07:37 PM

in addition to the new pricing announcement, Tracinda Corp. stooge suggested that GM unload SAAB and Hummer. i agree, of course. SAAB should just be absorbed into Opel and then sold worldwide as Opel's. then they could try to be competitive foreign car-bait for US customers.

JST · 01-11-2006, 09:01 AM

Quote:

Originally Posted by lemming

in addition to the new pricing announcement, Tracinda Corp. stooge suggested that GM unload SAAB and Hummer. i agree, of course. SAAB should just be absorbed into Opel and then sold worldwide as Opel's. then they could try to be competitive foreign car-bait for US customers.

GM has done nothing with Saab, and its hard to imagine that brand turning into an asset the way that they are packing it full of badge-engineered products. Not sure who, if anyone, would buy Saab, though.

Dumping Hummer is a stupid idea. Not "core"? What the hell does that mean? They are trucks, they don't cost much to design since they are largely based on GM architecture, and despite the jump in gas prices they are a license to print money. Hell, Hummer has been one of the few areas where GM has been able to introduce truly unique, differentiated products that have a built-in marketing message and value proposition. If you are going to reduce GM's brand complexity (and that isn't a bad idea), Hummer is not the brand I would get rid of.

blee · 01-11-2006, 09:35 AM

Quote:

Originally Posted by JST

GM has done nothing with Saab, and its hard to imagine that brand turning into an asset the way that they are packing it full of badge-engineered products. Not sure who, if anyone, would buy Saab, though.

Dumping Hummer is a stupid idea. Not "core"? What the hell does that mean? They are trucks, they don't cost much to design since they are largely based on GM architecture, and despite the jump in gas prices they are a license to print money. Hell, Hummer has been one of the few areas where GM has been able to introduce truly unique, differentiated products that have a built-in marketing message and value proposition. If you are going to reduce GM's brand complexity (and that isn't a bad idea), Hummer is not the brand I would get rid of.

Question: Which division (other than Saab) would you kill? Pontiac, for their habitual under-delivery of driving excitement? Buick, for having a muddy vision statement and turning out cars that match? Or Saturn, perhaps for the same crime? I think we can all agree that Caddy and Chevy are staying firmly put.

ff · 01-11-2006, 09:35 AM

Quote:

Originally Posted by JST

If you are going to reduce GM's brand complexity (and that isn't a bad idea), Hummer is not the brand I would get rid of.

And besides, if you dump Hummer, what are the ass-holes going to drive?

01-10-2006, 02:30 PM	#1
Rob The user formerly known as rwg Join Date: Oct 2003 Carmudgeonly Ride: Z4 Location: Vegas baby! Posts: 8,261	Gm makes an intelligent move? Wow. http://www.chevrolet.com/m/06/060110_press_release.pdf Looks like this includes the Corvette.

01-10-2006, 07:37 PM	#7
lemming Western Anomaly Join Date: Oct 2003 Carmudgeonly Ride: White Orca Posts: 16,614	in addition to the new pricing announcement, Tracinda Corp. stooge suggested that GM unload SAAB and Hummer. i agree, of course. SAAB should just be absorbed into Opel and then sold worldwide as Opel's. then they could try to be competitive foreign car-bait for US customers. __________________

01-10-2006, 02:39 PM	#2
Doug Guest Posts: n/a	First we get the article from a GM exec saying the family pricing was bad now this? http://forums.carmudgeons.com/showthread.php?t=6351

01-10-2006, 02:43 PM	#3
ff . Join Date: Mar 2004 Posts: 13,514	Sounds like a going out of business sale to me.

01-10-2006, 02:49 PM	#4
Rob The user formerly known as rwg Join Date: Oct 2003 Carmudgeonly Ride: Z4 Location: Vegas baby! Posts: 8,261	Sounds smart to me. They have trained their customers to wait for their big promotions, cash back, and "employee discount" sales. Now they are saying the cars are good and a value and maybe the shopping experience will be easier. Or maybe they will just get msrp instead of a reduction now (I doubt it). But this is smarter than jumping from sale to sale. Mercedes did the same thing somewhere in the past - lowered the invoice to msrp markup to 8% and told the dealers to live with it. Some of them even do. I haven't notice it hurting their sales.

01-10-2006, 03:39 PM	#5
Doug Guest Posts: n/a	Hummer not included?

01-10-2006, 04:40 PM	#6
blee Doctor Mudgeon Join Date: Oct 2003 Posts: 6,433	Finally, they did it. This has been rumored for a year or so, IIRC. I predict this will have little impact on the actual price paid for most of these cars, and GM is probably predicting the same. The idea here is to reduce the customer's expectation that they will be able to buy a GM vehicle for multiple thousands off of the MSRP. As mentioned elsewhere, there is also a big push to educate the customer on the quality of GM vehicles. If both of these efforts are successful, then perhaps GM will be able to sell their cars without resorting to insane rebates and 0% financing all year long. Then, in a few years, new models will come out and customers will not automatically expect to pay $1000 under invoice for them...but they'll show up to buy anyway.