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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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#699 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [cooterbfd] by fintail
Jun 29, 2009 (6:22 pm)
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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)
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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)
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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.
#702 of 874
Re: question for the group [blckislandguy] by Mr_Shiftright HOST
Jun 30, 2009 (7:37 am)
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Replying to: blckislandguy (Jun 29, 2009 6:15 pm)

Ah well, Vietnamese, Sicilian...wisdom is wisdom.
#703 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fintail] by jae5
Jun 30, 2009 (9:45 am)
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Replying to: fintail (Jun 29, 2009 7:15 pm)

Agreed. In that end of the market if you have to scream and yell about how the product has incentives on the hood, those in that market will believe it must not have what it takes to sell at the elevated price. In other words, "What's wrong with it?". Incentives may work on the lower-end product lines, but when you're selling prestige, refinement, culture, the "experience" if you will the product has to stand on its on, not on cash incentives.
 
And as the original poster stated, it's hard to justify spending $50K for a vehicle when you have essentially the same vehicle that is a year older (or less) sitting next to it for roughly HALF the price. Add to that it's bigger brother selling for less cash, again only a year or slightly less older. What message does that send to a potential buyer? Having driven and spent considerable time in a CTS, no way would I pay $50K for one; heck I wouldn't pay $40K.
#704 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [cooterbfd] by tlong
Jun 30, 2009 (1:58 pm)
Reply

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

You also bring up a good point.....sweetheart lease deals. That's how the Germans get people into their cars, while GM uses incentives.
 
The problem is that lease costs are a function of depreciation, and a GM car which is much cheaper is likely to cost as much on lease. Why lease a GM for $x when you can lease a German or Japanese car worth $10K more for the same $x?
 
GM is cheaper in cost to procure which is why they have sales deals. They are more expensive in depreciation which is why it is so tough for them to have sweetheart leases.
#705 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [tlong] by Mr_Shiftright HOST
Jun 30, 2009 (3:57 pm)
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Replying to: tlong (Jun 30, 2009 1:58 pm)

I was thinking today-- Who ever thought it was a good idea to create a business model where the whole idea is to baffle and confuse the customer? Do they sell refrigerators and furniture this way?
 
Just TRY and interpret a lease agreement in every detail. It's easier to buy a house.
#706 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [Mr_Shiftright] by fezo
Jun 30, 2009 (4:01 pm)
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Replying to: Mr_Shiftright (Jun 30, 2009 3:57 pm)

And that in a nutshell is why I never have and never will lease a car.
#707 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [fezo] by Mr_Shiftright HOST
Jun 30, 2009 (4:02 pm)
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Replying to: fezo (Jun 30, 2009 4:01 pm)

All this smoke and mirrors in buying a car, it's ridiculous. It's a screwy and antiquated business model. They don't sell planes and yachts like this.
#708 of 874
Re: BUILD IN AMERICA, SELL AT REASONABLE PRICES [Mr_Shiftright] by imidazol97
Jun 30, 2009 (4:05 pm)
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Replying to: Mr_Shiftright (Jun 30, 2009 3:57 pm)

>Do they sell refrigerators and furniture this way?
 
Have you comparison shopped mattresses?
 
Look at buying computers for the home. All kinds of combinations of CPUs, memory, motherboard speeds and capabilities, drives, et al. It's impossible to compare real quality and value from brand to brand. And then there are the closeout, reduced prices on the computers but those are models that may be 2 months old and aren't the latest and greatest in the eyes of the afficianados, therefore they have slightly reduced pricing and are actually much better values than the latest and greatest. But this is really sounding like car buying, isn't it.

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