Bolshevik Motors' gimmick-of-the-week

[aristotle]

All new GM cars sold in the coming weeks will be accompanied by a 60-day money back guarantee. They're trying anything to keep those union guys working. Making GM profitable isn't even on the radar anymore... GM has become just another government -run public works program. The government bailout is a scam at the taxpayers expense. To the Car salesman-in-chief: "You lie!"

 

[Darmstadter]

I think Dieter Zetsche (former head of Daimler) hit it on the head a few years back when the Ford and GM started offering long no interest loans to boost sales. He said something along the lines of "they are mortgaging their future sales. There are only so many people at any given time that are in the market for a new vehicle. When they come out with these gimmicks (cash for clunkers), they are simply getting some people to speed up their plans for a new vehicle. It doesn't change the size of the market. It doesn't build lasting market share---it just borrows from their future sales---while cutting their profits.

 

[muttly]

Excellent points by you two. You both nailed it.

 

[greg334]

In the same regards, leasing effects their future by putting used cars up for sale that the resale value has been artificially propped up through the lack of real ownership against new vehicles.