Quote:
Originally Posted by Remford
That's exactly the problem with Camaro - and the whole of GM for that matter. The cars it makes has little to do with how well they sell, which depends almost entirely upon how much GM is willing to pay customers to buy one.
It's one of the primary reasons GM tanked to begin with and why, despite enjoying one of Detroit's lowest cost structures, it has among the entire industry's worst profit margins. The instant Gm takes the money off the hood, interest stops in its tracks.
About all Camaro has to look forward too is how poorly GM trucks are doing by comparison with a 139 days' supply on hand and near-record incentives on many models. With all the new trucks it wants to introduce, it's going to need to almost walk away from an entire quarter worth of truck profits just to clear a runway for its own new goods.
Unfortunately, just like Europe where Opel continues to churn product beyond customer demand, every OTHER maker will also be caught up as collateral damage needing to compete on the basis of incentives rather than product.
For all the tens of billions expropriated and poured into GM, this is the one fundamental problem it hasn't been cracked despite others having done on their own long ago. And it won't get any easier when the next contract comes around and the "sweetheart" effect of the UAW's retirement trust owning 1/4 of GM doesn't have the cash value anybody once expected and workers start demanding a proverbial bird in the hand.
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+They need to follow subarus model and make less cars than there is demand for. People are willing to wait a little longer to get a car if they get to build all the options they want.
Gm floods the market with cars, driving down the value of all of them.