Quote:
Originally Posted by Martinjlm
It's all about pricing. We had these discussions often when I was still at GM. When GM was coming out of bankruptcy, one thing was made VERY clear. Profit is more important than market share. Period.
Since it is on Alpha and has a lot more features than 5th Gen and a lot of those features are pushed via trim levels (looking at you, 2SS), the average transaction price for 6th Gen Camaro is significantly higher than the average transaction price for 5th Gen....and for Mustang and for Challenger. GM has also been focused on adjusting production rates to maintain the right prices instead of keeping the factories cranking and tossing money on the hood. That's not just for Camaro, that's across the board. There still are incentives, in most cases to remain within the competitive range when competitors offer incentives. But the days of offering huge rebates to clear inventory off lots are gone.
So, basically, GM would like to outsell Mustang and Challenger (who wouldn't?) but is okay with not outselling them (market share) if the volume that is sold can be sold at high transfer prices and with better profit per vehicle.
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True and fair points.
I mentioned it in another thread, ATP is a great stat to throw around but with out knowing how much profit is being made it's more fluff than actual data to me IMO.
Example, one of the products I sell at my company I know I am selling at a much higher price than my direct competitor. So in essence it has a much higher ATP.
However in this instance, I know my profit margin on this item is razor thin. I know my competitor is making more profit per item than I am.
As far as big incentives go I would say the annual 20% off MSRP disagrees with you there lol