It was announced yesterday that GM will keep the low discounts as a new way of life, will Ford and....all the rest follow?

I would have loved to be a fly on the wall..... in the boardrooms of the other manufactures.. when GM did the deed!

 

I hope they can keep surviving. I'm sure they are making money, just not what the investors want.

 

We'll IMO time to quit worry about what they think, and do what they need....to stay in business.

IMO good idea move the stock

 

Wouldn't it be a good time to buy the stock once it drops a little and stabilizes?

 

Huh? CNBC reported this morning that the GM discount program would end Aug 1. What are you referring to?

 

What has me wondering is:
1. What they will do for thier employees as a special deal?
Recieving 20% off a new vehicle was once a very special privelidged thing for an employee, and I wonder what GM (and Ford) will do for thier US employees to continue thier support for thier respective brands

2. Will they make it International?
Currently this offer is only available in the US (and Canada????). Will they extend this offer globally?


A lot of people look at GM, Ford et al. and say they are in Financial doom, but people look over the outstanding costs they have spent saving thier future by investing huge amounts of money in emerging markets.
It is just some of thier major competitors (read: Toyota, and Honda to a certain extent) are already developed in those markets.

The big thing is:
Will Ford and GM understand these developing markets?
And will thier gamble pay off?

Toyota understands the US market very well for a foreign manufacturer (prehaps even more so than thier domestic competition), but they haven't forgotten about thier home market.
I am slightly concerned that they are kind of throwing money at these markets ***** nilly before actually understanding the markets...

For example: How many people in China do you think can afford a Lincoln Navigator (oops, did I say that out loud? )

 

Confirmed... article in WSJ this morning states:

"General Motors Corporation said it plans to end its successful "employee discounts for everyone" promotion next week.

The company also signaled that it will embark on a new pricing strategy for 2006 models that will attempt to focus on permanently lower sticker prices instead of big rebates.

"It is our intention to end the employee discount program on August 1," GM spokesman Jeff Kuhlman said yesterday."

 

You found what I was talking about....

 

[QUOTE=jbau]Confirmed... article in WSJ this morning states:

"General Motors Corporation said it plans to end its successful "employee discounts for everyone" promotion next week.

The company also signaled that it will embark on a new pricing strategy for 2006 models that will attempt to focus on permanently lower sticker prices instead of big rebates.QUOTE]

The "new pricing strategy" is continuation of what they have been doing for many years. Many years ago (I remember in the 60s) the difference between MSRP and dealer invoice was between 30 and 40% as compared to 10-15% today (in many cases). Since MSRP has generally been ignored (even Ford's web site gives you dealer invoice when you price one out), setting the price to something in the range that people actually pay will be helpful. It will have more impact on the imports such as Toyota and Honda that sell closer to MSRP as it will show the actual price difference more clearly.

 

You are correct in just pointing out why nothing that the US makers draw up gets into Japan and the like.....

Last time I checked, not too many duallies or probably even Crown Vics fit on the streets of Tokyo or Shanghai....buy up a Daewoo or Mazda, let them develop what they have already for those markets and make a buck off it and leave it at that.

Besides, the profits aren't in Asia anyway. Otherwise, Toy, Honda and Hissan would still be slapping out 70s-like econoboxes.

As for what the stockholders think.....are they thinking??? To let the "fit hit the shan" like things already have.....someone's asleep at the wheel.

 

I've been kind of hinting at that the last week. i think you'll be surprised when you see what GM considers a substantial discount built into the sticker- it really will be substantial.

My old bottom-line, though- how about building cars and trucks folks actually want to buy?

 

GM employee discount was to clear inventory and help set the new prices on the upcoming car/trucks. And to help sales yes it ends aug 1 but new cars/trucks will out soon after.

 

Polarbear, Jeff, help a brotha out on what i'm saying.......yo!


This pricing is not REALLY affecting the General's or Ford's or the German company's profit per car.

The manufacturers were always selling to the dealers at this cost.

There is a small percentage the manufacturer reimburses the dealership for each sale...........that is how the A, D, and X plans have always worked. But all in all it's the dealers taking the biggest hits profit wise.

However, the more volume the more back half profits and service $$$ can be made...just have to work harder (sell more) for the same $$$

 

I wonder how this will effect Ford. Will it require Ford to lower its MSRP substantially? Even though MSRP is basically meaningless in terms of what people actually pay its what many start out looking at when car shopping.

 

Indeed, I reckon they could have charged another 5k premium on the 05 GT Mustang and the lost sales could have been counted on 1 hand.

So you think we should start a protest in Dearborn: "We don't want econoboxes!!!"

Ford has always been the American "peoples car manufactuer", and I believe it should remain so, there is no problem in producing some cheap vehicles for the people that can afford them, but prehaps make some with some desirability.

The day I will be a completely satisfied person is when I drive past a Ford dealership is when there are no Fords on the lot, just used BMW's, Mercs and Porsches...