GM Boosting Production of Large Vehicles

[PingSpike]

Originally posted by: ElFenix

Originally posted by: dullard
They are addicted to the short temporary fix of high profit margin vehicles. Addicts never care about the long term damage of their addiction.

in the long run you can't make profits, so you make them in the short run when you can.

and at a cash-flow oriented place like GM is right now, you have to worry about the short run before you can worry about the long run.

the way the things are selling right now, GM is increasing their market share (at least in this segment).

if you're in shark infested waters, and you're pretty close to a raft and you see an island off in the distance in the opposite direction, what do you do? GM is doing the same.

And to take the analogy a bit further, once you're up on the raft you can start thinking of a plan to get it to the island.

 

[ElFenix]

Originally posted by: PingSpike

And to take the analogy a bit further, once you're up on the raft you can start thinking of a plan to get it to the island.

i sure as hell hope GM has a plan for that.





of course, once they get there, will they discover the secret hatch in the ground with the 70s computers and LPs inside?

 

[PingSpike]

Originally posted by: ElFenix

Originally posted by: PingSpike

And to take the analogy a bit further, once you're up on the raft you can start thinking of a plan to get it to the island.

i sure as hell hope GM has a plan for that.





of course, once they get there, will they discover the secret hatch in the ground with the 70s computers and LPs inside?

I hope they have a better plan then the lost writers have, their plan seems to be "make random unexplained stuff happen until ratings drop". 😛

 

[Mr.IncrediblyBored]

Originally posted by: PingSpike
That would be an excellent plan...if there weren't several other automakers with competing vehicles available in that same class that people couldn't just buy instead. I swear to god its like they are oblivious to the entire market they actually exist within sometimes.

I think you should read the article again. GM is cutting fleet sales to increase residual value and sale price for their retail dealerships. There shouldn't be a lack of Impala's on the market, unless of course you own a Hertz or Avis rental lot.

GM is boosting production in the segment with growing sales - GMT900 trucks - and easing production in the segment that's already matured - Impala. The gamble is that the higher retail price for the Impala will make up for higher volume from fleet sales.

I don't understand the hostility in this thread. These decisions make sense to anybody with even an ounce of objectivity.

 

[Pacfanweb]

They can't make enough of the new ones already, so it makes sense that they are boosting production.