Quote:
Originally Posted by ThirteenTwenty
Neither you nor I know how many Alpha vehicles need to be sold to reach black ink for the platform or Mustangs for that matter. I suspect they are well below that number given how poorly the Caddy's have sold and Camaro sales being what they are. I could be wrong , but it's hard for me to believe the production #'s have covered R&D and tooling at this point. Maybe Jim Martin can shed some light?
As far as "If it makes a profit does it justify its continuation?" Thats depends I suppose, If GM feels they could produce another vehicle that would cost similarly in R&D/tooling but sell much more and return more profit then no it doesn't warrant continuation. Same for Mustang, but I believe there is more at stake with axing Mustang for Ford.
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I got nothin'. Too many variables to the equation. What is the installed capacity? What's the break even volume? What's the additional investment going from Alpha to Alpha 2?
From a strategic point of view, Alpha is here to stay because Cadillac is Alpha and Chi (XT5 / XT6). GM will work hard to improve the products position in the marketplace before considering shutting it down. To that extent, Camaro provides a volume relief valve. More volume is better, low volume does not mean kill.
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A8
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