View Single Post
Old 07-06-2016, 08:16 PM   #418
Rusty35
 
Drives: 2013 ZL1
Join Date: Nov 2015
Location: Texas
Posts: 474
Quote:
Originally Posted by ChocoTaco369 View Post
General Motors currently has a market capitalization of $42.26B.

Mazda Motor Corp. currently has a market capitalization of $7.62B.

If you're going to compare GM to Mazda, GM's stock price would have to immediately fall 82%. What do you think would happen to shareholders and executives if GM's stock fell 82%?

Heads would roll. The Camaro exists for one reason: it turns GM a profit. They have to dedicate huge amounts of manpower, assembly line space and warehouse space to manufacture Camaros. If the Camaro does not sell, GM will replace it with something that will sell better while occupying the same space and utilizing the same horsepower. The Camaro does not exist for any of us. You have to think like a businessman. If the business isn't generating profit, it's gone. Just like the Camaro was axed for not selling in 2002, it WILL happen again if things don't pick up.

This is not a situation where the automobile market is in the toilet. American muscle is still selling. The Camaro just isn't. Sales are moving away from the Camaro to the Mustang and Challenger, which is GM's worst nightmare. No, GM did not plan for this. This is crushing their bottom line - their revenues are taking a big hit moving from the 5th Gen to the 6th Gen and a lot of people are looking bad right now. By all business definitions, the 6th Gen so far has been a complete failure. Magazine articles do not define success. Only sales figures define success.

The problem is the pricing structure - the core Camaro fanbase has been priced out of the Camaro market. The 6th Gen V6 costs the same as a 5th Gen V8, and the 6th Gen V8 costs the same as a 5th Gen ZL1. It is a HUGE problem when I can buy a new loaded 2015 ZL1 on Black Friday clearance for $46,000, but a loaded 2016 SS costs me $51,000.

GM cannot afford an SS that sells like a ZL1. These are supposed to be VOLUME cars. It is still early, but SOMETHING must be done to decrease the manufacturing costs in 2017 and reduce the MSRP at least 5% or the entire line is in jeopardy.
How are the other cars built at the Lansing plant selling compared to the camaro?
Rusty35 is offline   Reply With Quote