Originally posted by: Shantanu
Incentives are a clever business tool. Let's say I try to sell you a Pepsi for 50 cents. You say the price is too high. The next person comes along, and I tell them the Pepsi is 85 cents, but that there's a 30 cent discount today. Consumer thinks he's saving $$$, but I end up pocketing more cash. That's how it's been with GM's incentives. Also, the 0 percent financing brings lots of customers into their dealerships, but only 15-20% can qualify for it because they need an impeccable credit rating. You might not believe it, but I doubt GM gives a sh|t because they're making plenty of money right now 🙂
Since when do fleet sales not count as sales? Last time I checked, money exchanged for goods and/or services was enough to qualify for a sale. It doesn't make a damn bit of difference whether that sale is to Joe Schmoe or to Hertz. There's no law requiring American companies or even the American government to purchase GM products. Yup. You can go to local limosine renting service next time they are expecting a shipment of cars, and scream at the top of your lungs that it isn't an auto sale taking place to the guy delivering the goods. I think he'll laugh at you while he pockets a fat paycheck.
GM posted a $1.5 billion profit last quarter. Most American manufacturing companies are losing lots of money right now due to the overvalued U.S. dollar. Toyota and Honda are only making money because the Japanese government spent $60 billion of their own wealth to buy and hold American dollars, in order to increase the U.S. dollar's value (which was about to slide), and raise the profits of Japanese manufacturers (most of whom are on their deathbeds). Whatever... GM also has huge pension obligations (which even Ford and Chrysler don't), and yet they still make plenty of money. I wouldn't worry about their financials too much 🙂