Remeber how GM was not performing well last year and decided to stimulate sales by offering employee pricing, as a gimmick incentive? It was a temporary fix, but it didn’t make people want to own GM cars in the long run.
Now Chrysler wants to give the same gimmick a try, starting in July.
[I]nvestors and Wall Street analysts have watched such sales programs with concern since they sacrifice profit margin for sales volume and force consumer attention back to cut-rate deals, a move seen as tarnishing U.S. auto brands.
You don’t see Honda and Toyota deeply discounting their inventory—or appearing to do so—at this time.
Last year, GM’s incentive helped that company steal market share from Chrysler. Will Sebring Coupes replace Escalades this time around?
Subscribe
8:18 pm (reply)
Dunno about Honda, but Toyota now has yaris.
11:58 am (reply)
I think they need to be careful with these types of programs. As the article points out, it has been seen as tarnishing the image of US auto brands. I’m not so sure the short term growth in sales from those promotions are worth it if it furthurs the belief that the auto brands are inferior.