May Sales Numbers
Postmaster
Joined: Nov 2004
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From: Marion, VA
I'd be surprised if it didn't happen. As well as the Chevrolet has been selling with their old design and the "different" front end look, I think there is a large number of people who are looking to buy an improved GM struck. There are people who bought a GMC because they didn't like the look of the Chevy and people who have not traded in their high mileage GMC because the new ones look just like the one they already have. I think the new GM trucks will be a big hit unless they mess up something really bad. I just hope they have reassigned the people who designed the Aztec, the Avalanche and the Chevy truck's front end.
Post Fiend
Joined: Jun 2001
Posts: 5,228
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From: Running Springs CA
"The Streets of San Francisco" and "Dragnet" both had Fairlane detective cars, even if Mopar had the lions share of the police market in California back then. Ford did seem to do the most product placement on TV back then. I remember "Automobiles provided by the Ford Motor Company" in the credits.
Jim
Jim
Elder User
Joined: Feb 2004
Posts: 946
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From: Orange
The main reason that GM is selling so much is because they are losing money to do so. They've been doing zero percent financing all year, now they're adding on more discounts on top of it. I don't know what genius bean counter thinks that a company that lost $1.1 BILLION in the first quarter should not only continue with 0% financing, but then add MORE discount. They're so intent on trying to beat Ford that they are running themselves into the poor house. Ford could sell 2 million F150s if they cut they price in half, but it would make no sense.
FTE Leadership Emeritus
Joined: May 2004
Posts: 18,787
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From: Melbourne, Aus
GM and Ford are/have been in a similar mess, just thier strategies of coming out of it are a LOT different.
GM's strategy appears to be sell more cars, even if it is at a reduced profit, but this will create a higher plant utilisation percentage.
Ford's strategy appears to be to consolidate market share, sell less vehicles, but offer less rebates, but make a greater profit on each vehicle.
It will be interesting to see which strategy will be more successful.
GM's strategy appears to be sell more cars, even if it is at a reduced profit, but this will create a higher plant utilisation percentage.
Ford's strategy appears to be to consolidate market share, sell less vehicles, but offer less rebates, but make a greater profit on each vehicle.
It will be interesting to see which strategy will be more successful.
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Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
GM's strategy appears to be sell more cars, even if it is at a reduced profit, but this will create a higher plant utilisation percentage.
Two key words apply to GM's strategy: "Cash flow."
Two key words apply to GM's strategy: "Cash flow."
Senior User
Joined: May 2005
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From: Sunny New Mexico
Originally Posted by BigF350
I know Ford is hoping to make a US$7billion profit in 2006...
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Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
BigF350 I would be interested to know what GM's profit targets are.
I know Ford is hoping to make a US$7billion profit in 2006...
consider this though: you can live (temporarily) without profits, but you can't live without cash flow. In the case of GM, cash flow is waaay more important for their current needs than profit. Question- can they outrun their bondholders before the new product line is on the showroom floor? I bet they can- and this is what this is all about. Unfortunately, Ford will share their pain before it's all over.
I know Ford is hoping to make a US$7billion profit in 2006...
consider this though: you can live (temporarily) without profits, but you can't live without cash flow. In the case of GM, cash flow is waaay more important for their current needs than profit. Question- can they outrun their bondholders before the new product line is on the showroom floor? I bet they can- and this is what this is all about. Unfortunately, Ford will share their pain before it's all over.
Last edited by polarbear; Jun 6, 2005 at 11:43 PM.
Elder User
Joined: Feb 2004
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From: Orange
Yep, as long as the marginal revenue is greater than the average variable cost, a firm will continue to operate in the the short run, but shut down in the long run. Sorry about that, had an econ final today.
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Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
I'm sure everyone's aware of that. The critical issue is to keep spinning enough cash until the key product line hits the showrooms- the GMT900 (new Silverado) and it's variations. What's nerve-wracking isn't the worry that it'll be a winning product, but betting the company on a full-size product line while we're staring at $2-$3/gallon gas.
mental or at least methane