Much is being made on CNBC about GM unveiling the Challenger and Camaro. You know, big, fast muscle cars.
Um isn't there a chance that gas prices will go back up close to $3.00? Didn't the US auto-industry do something like this in the 1970's; that is stick with gas guzzlers too long?
I am unlikely to accurately assess consumer demand for new muscle cars but this strategy is not obvious to me.
Dylan just made the same point I started to write above. I will say the Camaro looks like it would be a rocket.
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I was purchasing a Camry the end of Dec. Didn't see a muscle car on the lot. I don't think there are enough niches in the auto market for GM to make a timly return to profits. They need to fiqure out how to serve the mass market for any real gain in market share.
I think it's particularly silly to go all-in on muscle cars at a time when Porsche, BMW and the sports car manufacturers are trying to muscle (ha ha I am funny) into the top end of the mass market. The prices that they are hoping to get for these Mustangs and Challengers are not very far off proper sports car money and I don't think that the "Dukes of Hazzard effect" is going to be all that powerful.
Headline today that they intend to cut prices on 57 of 76 models, some as much as $2500.
"In 2005, the average discount on a new GM model was $3,896, down from $4,181 in 2004, according to Autodata. The average discount on all models sold in the United States last year was $2,809."
But: "While industry sales were flat last year, GM’s U.S. sales dropped 5 percent."
Bigger thaan average incentives, declines sales. Yes Detroit, take a loss on every car & make up on volume...
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060110/AUTO04/601100446
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