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What if you were in charge of GM?

874 messages,  Last post on Oct 28, 2009 at 10:20 AM

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What is this discussion about? Automotive News, Classic Cars, Concept Cars, Future Vehicle


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#692 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [cooterbfd] by fintail
Jun 29, 2009 (5:16 pm)
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Replying to: cooterbfd (Jun 29, 2009 1:31 pm)

Size is a very small factor in this segment. Position is more important, and the entry models of brands with higher prestige (BMW, MB) are cheaper than the entry model of a brand that has had some image problems in the past 25 or so years (Caddy). It's a very debatable strategy. To regain lost ground one must be superior to the competition as well as undercutting them. People must have reasons to change, plural.
 
If one is going to spend 40-50K and cry about premium fuel, they can't truly afford the car to begin with
 
Can GM prices ever be mentioned without some big incentive scheme? Loyalty this, employee pricing that. If I was in charge of GM I'd dump all of that garbage. Just price the things.
#693 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fintail] by imidazol97
Jun 29, 2009 (5:20 pm)
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Replying to: fintail (Jun 29, 2009 5:16 pm)

>If one is going to spend 40-50K and cry about premium fuel, they can't truly afford the car to begin with
 
When the sleek Mercedes was relatively new, I saw an SLK-55 at the local Swifty gas station and the driver was putting in his own fuel. Really looked out-of-place. In this area Swifty is a chain with a reputation for buying junk fuel. That reputation may or may not be deserved today, but I rarely have bought at their station even if pricing is substantially lower than others in area because of it. I certainly wouldn't feed my Mercedes there.
#694 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fintail] by imidazol97
Jun 29, 2009 (5:22 pm)
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Replying to: fintail (Jun 29, 2009 5:16 pm)

>If one is going to spend 40-50K and cry about premium fuel, they can't truly afford the car to begin with
 
When the sleek Mercedes was relatively new, I saw an CLK-55 at the local Swifty gas station and the driver was putting in his own fuel. Really looked out-of-place. In this area Swifty is a chain with a reputation for buying junk fuel. That reputation may or may not be deserved today, but I rarely have bought at their station even if pricing is substantially lower than others in area because of it. I certainly wouldn't feed my Mercedes there.
#695 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fintail] by cooterbfd
Jun 29, 2009 (6:03 pm)
Reply

Replying to: fintail (Jun 29, 2009 5:16 pm)

"......Size is a very small factor in this segment. Position is more important, and the entry models of brands with higher prestige (BMW, MB) are cheaper than the entry model of a brand that has had some image problems in the past 25 or so years (Caddy). It's a very debatable strategy. To regain lost ground one must be superior to the competition as well as undercutting them. People must have reasons to change, plural."
 
I'll agree with the prestige factor, but the base C and 3 are not only smaller, but have much less powerful engines 228 and 230 respectively, as opposed to 263. And yes, the CTS starts at $36K, as opposed to $34K for the C and $33 and change for the 3. HOWEVER, when you bump up to the top of the line RWD versions, the CTS starts at $38,860 while the C jumps to $39K, and the 335 is over $40K. These versions give you the 300 (304 in the CTS) hp engines, except the C, which is 263. That levels the playing field some (although the 335 handles better due to it's smaller stature and pedigree.
 
".....Can GM prices ever be mentioned without some big incentive scheme? Loyalty this, employee pricing that. If I was in charge of GM I'd dump all of that garbage. Just price the things."
 
I'll agree there too. Go to a Saturn style pricing, no haggle. (Or like their "Red Tag Sale") The price you see is the price you pay!!!
#696 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [imidazol97] by fintail
Jun 29, 2009 (6:13 pm)
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Replying to: imidazol97 (Jun 29, 2009 5:22 pm)

The guy might have been stretching to pay for the car, or simply didn't know better. Around here, Arco has that bad rep, and I do not go there for my own cars, where Chevron costs barely anything more. I've heard too many horror stories and warnings from people when I used to live in the same region as a refinery.
#697 of 874
Re: question for the group [Mr_Shiftright] by blckislandguy
Jun 29, 2009 (6:15 pm)
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Replying to: Mr_Shiftright (Jun 27, 2009 3:07 pm)

Mr Shiftright, that, my friend, is an old Vietnamese expression.
#698 of 874
Re: question for the group [blckislandguy] by cooterbfd
Jun 29, 2009 (6:19 pm)
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Replying to: blckislandguy (Jun 29, 2009 6:15 pm)

How's life in New Shoreham these days?
#699 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [cooterbfd] by fintail
Jun 29, 2009 (6:22 pm)
Reply

Replying to: cooterbfd (Jun 29, 2009 6:03 pm)

I don't know if the average buyer of these entry models is concerned about raw hp either - especially if the cars are purchased via sweetheart lease deals as so many were at one time, and doubtlessly are today. It's badge, styling, badge, reputation, badge, and features. Many cars are larger and more powerful, yet significantly cheaper than a C or 3er, but on a global basis, those cars completely own their market segment, and that doesn't seem to be changing. The CTS is a fine car no doubt - but this end of the market has been the same for 25 years, and it will be a difficult one to change.
 
I never see ads from other highline makers touting loyalty discounts, and fans of those brands never brag about getting employee discounts when purchasing. It's a negative image factor, and GM needs to admit it.
#700 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fintail] by cooterbfd
Jun 29, 2009 (6:37 pm)
Reply

Replying to: fintail (Jun 29, 2009 6:22 pm)

".....I never see ads from other highline makers touting loyalty discounts, and fans of those brands never brag about getting employee discounts when purchasing. It's a negative image factor, and GM needs to admit it. "
 
And a car like the CTS can change that image. You also bring up a good point.....sweetheart lease deals. That's how the Germans get people into their cars, while GM uses incentives. Either way, they are getting the payment down to something (relatively) affordable, and that is what seals the deal.
#701 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [cooterbfd] by fintail
Jun 29, 2009 (7:15 pm)
Reply

Replying to: cooterbfd (Jun 29, 2009 6:37 pm)

I guess the difference is in the approach...the Germans are much more discreet, and in the prestige market, becoming more affordable and not screaming about it is the way to go.
 
The CTS is indeed the car that can change that image, but the marketing and pricing strategy isn't perfect yet. I remember seeing loaded 50K CTS at my local dealer too...a lot of car, but it's going to be tough making a conquest sale at that level.

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