Quote:
Originally Posted by Posaune
How can we assume anything at this point about the 6th gen being more profitable than the 5th gen? We can guesstimate on revenue based on what GM stated about ATPs being up $3700 but that is about it for solid numbers. Other thing we know which could affect the profitability by itself and vs. The 5th gen:
The 6th gen is on a shared platform however, 70% of the chassis components are unique to the Camaro (IIRC).
It is sharing an assembly line with two other cars and running three shifts of which, the total sales volume is sufficient for two shifts.
5th gen sold very well and had six years and more than 500,000 units to amortize its development costs, 6th gen is still less than a year old and selling at much lower volume, albeit at an average of $3700 than the 5th gen.
6th gen sales are very SS heavy (based on what GM has said) which helps generate the higher ATP. As GM adds cash back to try to get the LT trim to sell, that ATP delta will come down.
Inventory building to the levels they are does not help add revenue and potential profits. Either you add incentives to get the excess product to sell (like we are seeing now with the cash back offer) or you idle the plant. Both options cut into revenue and profits.
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The "more profitability" per car is what has been said by GM and various reports/articles. How much more? Who knows.
I think one of the things that points to this direction is the decision to offer less variations/options and building more "standard" features into the cars than normal.