[aestil]

Originally Posted by SS 1LE

Your concept of business thinking is why so many businesses fail...

Businesses care about one thing, making money. If the desired net profits can be made with lower volume, that is precisely what you want. Less volume means less overhead, less payroll, less shifts, less shipping needs, less inventory, less maintenance, less of a lot.

No, the only thing that matters is selling more units than the Mustang.

[shaffe]

Originally Posted by hotlap

If you...

1. Raise MSRP over 10%
2. Eliminate the lowest cost trim level
3. Roll pervious options into standard content
4. Upgrade to an expensive, hard tonneau convertible top cover
5. Increase performance significantly over your leading competitor
6. Build it on a Cadillac production line

I suspect they planned for lower sales than the outgoing car. That’s how it works…

Those are some good points. However with how bad the ATS/CTS have been selling one would think that they would want the Camaro to be the big volume car that is based on Alpha

[SS 1LE]

Originally Posted by DenverTaco07

GM, if i recall correctly - actually is trying to sell less Camaros as they stated they are purposefully trying to reduce rental fleet sales.

Also, the whole sales thing is more complicated than saying all companies just want to sell more - not really true. If they have data that shows they can sell less Camaros with larger margins they are working less for the same amount of profit - not only that, but it may allow them to free up resources to work on other vehicles to make more money, and that is the only real goal..more money, not more sales necessarily, though there is obviously a correlation.

"In the U.S., both Ford (NYSE:F) and General Motors (NYSE:GM) compete hard for commercial and government fleet sales -- and Fiat Chrysler (NYSE:FCAU) has said that it would like to win more of that business.

But sales to rental-car fleets are a different story. GM said recently that its sales to rental-car fleets are down 11 percent in 2015. That's not lost business; it's a planned reduction."
http://www.fool.com/investing/genera...eet-sales.aspx


and

"Just last week, we told you that General Motors has substantially increased its Average Transaction Prices while decreasing sales to rental fleets, which are significantly less profitable than retail sales to individual customers and can even decrease new car values. The automaker had not previously shared the details on reducing rental car sales, until this week."

http://gmauthority.com/blog/2016/03/...units-in-2016/


Again, MAXIMIZE PROFITS, not necessarily equates to Maximize sales.

Wow, somebody that gets it!

[Memphis43]

It's why select models are 10% off this month on Camaros


Sent from my iPhone using Tapatalk

[Thor142]

Originally Posted by SS 1LE

Your concept of business thinking is why so many businesses fail...

Businesses care about one thing, making money. If the desired net profits can be made with lower volume, that is precisely what you want. Less volume means less overhead, less payroll, less shifts, less shipping needs, less inventory, less maintenance, less of a lot. That means the gross company layout is much smaller, which maximizes net profits.

So selling lower volumes with a 4 month (and increasing) backlog of stock is good. Gotcha

[shaffe]

Originally Posted by SS 1LE

Your concept of business thinking is why so many businesses fail...

Businesses care about one thing, making money. If the desired net profits can be made with lower volume, that is precisely what you want. Less volume means less overhead, less payroll, less shifts, less shipping needs, less inventory, less maintenance, less of a lot. That means the gross company layout is much smaller, which maximizes net profits.

Everything that you said makes sense except the bolded part. Seems like there is an excessive amount of inventory available.

[Raven87]

So if the idea was to sell less than before and make more money per unit, why make as many (or more?) as before?

Seems like the cost of building what doesn't sell knocks the hell out of the profit from those units that do?

[SS 1LE]

Originally Posted by aestil

No, the only thing that matters is selling more units than the Mustang.

Actually no, that has never been an outright goal for GM. There have been very few years where the Camaro outsold the Mustang. Many people just buy a Mustang, because it's a "Mustang".

Plus Mustangs have huge fleet sales that GM will never compete with, nor want to. That is why S197 V6 Mustang resale was beyond terrible...

[SS 1LE]

Originally Posted by Thor142

So selling lower volumes with a 4 month (and increasing) backlog of stock is good. Gotcha

Originally Posted by shaffe

Everything that you said makes sense except the bolded part. Seems like there is an excessive amount of inventory available.

I was more so referring to parts inventory on hand. As in making the cars...I should have been more specific. I edited it...

[DenverTaco07]

I say we just give it some more time before we start killing each other over something that frankly, nobody here should really care about unless you are a President or VP of GM.

As a shareholder, I only care about overall GM P/E etc. although the report today of them being down in total sales of 2% last month did hit the stock by 3%, but wait till earnings come in...it will jump again.

[DenverTaco07]

Originally Posted by SS 1LE

Actually no, that has never been an outright goal for GM. There have been very few years where the Camaro outsold the Mustang. Many people just buy a Mustang, because it's a "Mustang".

Plus Mustangs have huge fleet sales that GM will never compete with, nor want to. That is why S197 V6 Mustang resale was beyond terrible...

I think he was being sarcastic.

[SS 1LE]

Originally Posted by hotlap

If you...

1. Raise MSRP over 10%
2. Eliminate the lowest cost trim level
3. Roll pervious options into standard content
4. Upgrade to an expensive, hard tonneau convertible top cover
5. Increase performance significantly over your leading competitor
6. Build it on a Cadillac production line

I suspect they planned for lower sales than the outgoing car. That’s how it works…

All valid points, and it makes sense...

[SS 1LE]

Originally Posted by DenverTaco07

I think he was being sarcastic.

It's the iNtErNeT...you never know lol.

[hotlap]

Originally Posted by SS 1LE

Actually no, that has never been an outright goal for GM. There have been very few years where the Camaro outsold the Mustang. Many people just buy a Mustang, because it's a "Mustang".

Plus Mustangs have huge fleet sales that GM will never compete with, nor want to. That is why S197 V6 Mustang resale was beyond terrible...

Plus, the Mustang is only option a performance oriented Ford buyer has.