In the Janesville Gazette Extra for Monday, Rachel Beck has begun to ask the question whether the GM discount plan that has increased the GM market share for the last month and unloaded inventory, is good for the long term profit propects of GM.
----On the one hand, they are arguing to labor that they need concessions to meet the large expense of health beneifits to GM employees on a per car basis, and on the other hand, they are cutting the profit margin on the cars they are selling so that they have no prospect of having the money to pay the health benefits they have promised. But in public relations they are claiming a successful month. Huh?
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They can go pretty low for market share. GM beleives if they are going to take a hit in a quarter they might as well make it count and rebound for the next quarteer. They will have to do better than Ford now because, Ford is offering the "employee discount" coupled with a cash back offer.
ReplyDeleteI noticed several brand new Chevy trucks, my brother bought the truck of his dreams (a GM) He said with the discount he could afford to get all the bells and whistles and still be with in his budget.
Who knows may be this will turnout to be like the airfare wars of a few years ago.