GMAC Related News on Leasing, Financing

[fp115]

Originally Posted by Buickman

you said "everything is more expensive". you have a better backstroke than Mark Spitz.

I said "everything is more expensive"? Read again, especially when I specifically said all products are more expensive. Since when is medicine, lumber and web services a product? Reading and comprehension not your forte?

[K Dawg ONE]

Wow, what a repost:
No more leases...for GM too???

[Buickman]

Originally Posted by fp115

I said "everything is more expensive"? Read again, especially when I specifically said all products are more expensive. Since when is medicine, lumber and web services a product? Reading and comprehension not your forte?

they're products, and GM certainly could lower prices. not that I recommend as such. preference for effective marketing as opposed to giveaways and distress merchandising as has been the norm under Red Ink Rick.

[2002 Caddy]

Originally Posted by Buickman

WELL IT KIND OF DOES. WITH BETTER MARKETING OUR PRODUCTS WOULD HOLD MUCH BETTER RESALE. AS IT IS, OUR MERCHANDISING IS HORRIBLE AND THAT EFFECTS RESIDUALS TREMENDOUSLY.

True, but the historic lease rates already included an expected "low" resale value and horrible residuals... The sudden rise in the Canadian Dollar (which was really a sudden drop in the American Dollar) caught all manufactures who offer leases by surprise...

The problem here is that if you overnight cut your new prices by 30%-40% this places a huge negative pressure on your used stock which makes your leasing residuals upside down.

I was at an Microsoft Event in Redmond last month and the CIO from Toyota Canada was there... They are getting KILLED on their lease returns AND they are getting KILLED by third party "companies" who are now "flipping" cars across the boarder. The lease returns are a huge problem for them right now.

[K Dawg ONE]

Originally Posted by 2002 Caddy

I was at an Microsoft Event in Redmond last month and the CIO from Toyota Canada was there... They are getting KILLED on their lease returns AND they are getting KILLED by third party "companies" who are now "flipping" cars across the boarder. The lease returns are a huge problem for them right now.

When I worked for Toyota, we would have Corollas and Matrixs come in off lease where fair market value on the vehicle was $12000 and the buyout was $8000...we were writing customers cehcks for $4000 to get our cars back!!! (usually absorbed into the new lease as trade)

[fp115]

Originally Posted by Buickman

they're products, and GM certainly could lower prices. not that I recommend as such. preference for effective marketing as opposed to giveaways and distress merchandising as has been the norm under Red Ink Rick.

Yes they could, so can all other auto companies. But rather than do it all at once they are doing it slowly to not have serious problems elsewhere. For someone that loves drilling the management for wrong moves I can't even believe you are suggesting many millions or even billions of dollars in losses to favour marketing.

[Buickman]

Originally Posted by fp115

Yes they could, so can all other auto companies. But rather than do it all at once they are doing it slowly to not have serious problems elsewhere. For someone that loves drilling the management for wrong moves I can't even believe you are suggesting many millions or even billions of dollars in losses to favour marketing.

in truth I get no pleasure "drilling" management. in fact, I find it most frustrating and wish I could simply enjoy being a GM retailer. as the father of seven, manager of a dealership, and owner of a Real Estate firm, there's enough other things to do. only embarked on this mission of improving the company after years of observing the literal stupidity and, along with numerous others, suffering the consequences of the repeated incompetency.

as to financials, Return to Greatness would immediately serve to save the firm over a Billion Dollars on an annual basis, while dramatically improving sales.

[sigma]

Originally Posted by Buickman

WELL IT KIND OF DOES. WITH BETTER MARKETING OUR PRODUCTS WOULD HOLD MUCH BETTER RESALE. AS IT IS, OUR MERCHANDISING IS HORRIBLE AND THAT EFFECTS RESIDUALS TREMENDOUSLY.

With better product the ability of said automobile to hold its residuals will improve. It's not all about marketing, contrary to what you believe.

[2002 Caddy]

Originally Posted by sigma

With better product the ability of said automobile to hold its residuals will improve. It's not all about marketing, contrary to what you believe.

Ah the endless "chicken and the egg" debate of "product vs marketing"
There are lots of examples of good product that never sells due to a lack of marketing... The XLR is our latest example and there's lots of marketing campains that are doomed due to a lack of decent product. GM minivans are an example of that...

He is something radical... If you want to be a great car company... You know, one that makes money... You need BOTH.

But back to the chicken and egg thing... In the debate of product vs marketing... Product takes YEARS... Fixing the marketing could be done in MONTHS. The product is comming... we need to fix the marketing NOW.

[dindak]

Originally Posted by fp115

Have you looked around at other companies and see their difference in price? Its the same. GM amongst other manufacturers cannot reduce prices drastically in order to match US pricing for several reasons.

• A reduction in price will cause products to be under valued in the market, competitors are not following.
• Will cause outrage in current customers, the value of their vehicle will drop significantly.
• The car company will assume a loss, especially if the vehicle is leased.
• Average Canadian income is much higher than the US.

No car company is matching MSRP on their US counterparts. All manufacturers, such as Chrysler as you mentioned offer "US pricing" discounts. The PT Cruiser for example is $2.5k more in Canada than it is in the US. Nearly all automotive companies are losing money in the Canadian market due to the high Canadian dollar. It is now illegal to purchase vehicles from the US and import them into Canada, doing so will get the dealership fined and closed down.

To find all pricing adjustments for GM vehicles:
http://www.gm.ca/gm/english/corporat...view?adv=78131



Great so now you listed Canada's forts. Medicine and lumber has ALWAYS been cheaper in Canada, even before our economy became this strong. Lumber is one of our greatest natural resources and we have free healthcare, does it surprise you that it is cheaper in Canada? Web and Email hosting has nothing to do with the debate, they are services, not products. I run a datafarm of 13 servers, which used to run out of Toronto but now runs out of Las Vegas. It cost me $15k less a month than managing it in Toronto. It simply depends on who you are with and what the terms are. A service is a service and has nothing to do with Canadian or US markets.

You really aren't helping your case with all the incompetent posts you've done thus far. This one really takes the cake.

You are wrong and name calling is not needed. Here is just one.

Example : Dodge Journey MSRP in Canada.. Starting at $19,995. In the U.S.$20750. Actually cheaper!

http://www.dodge.com/en/2009/journey/

http://www.chryslercanada.ca/selector/index.php?lang=en

I have no idea why you are defending GM and other car companies that are not lowering prices. Resales are getting killed anyway, may as well sell people new and stop the U.S. car flood. I am sure I am not the only person looking at a lightly used U.S. car and saving thousands.

[fp115]

Originally Posted by dindak

You are wrong and name calling is not needed. Here is just one.

Example : Dodge Journey MSRP in Canada.. Starting at $19,995. In the U.S.$20750. Actually cheaper!

http://www.dodge.com/en/2009/journey/

http://www.chryslercanada.ca/selector/index.php?lang=en

I have no idea why you are defending GM and other car companies that are not lowering prices. Resales are getting killed anyway, may as well sell people new and stop the U.S. car flood. I am sure I am not the only person looking at a lightly used U.S. car and saving thousands.

You just named a brand new model with no history to which it makes sense for it to be at that price. If GM sold the Cruze now it could be the same price in Canada or cheaper. Chrysler seems to be the only company thats trying it with certain products but losing out on a lot of money. All other companies are making their way down, but it may take a while.

[dindak]

Originally Posted by fp115

You just named a brand new model with no history to which it makes sense for it to be at that price. If GM sold the Cruze now it could be the same price in Canada or cheaper. Chrysler seems to be the only company thats trying it with certain products but losing out on a lot of money. All other companies are making their way down, but it may take a while.

Base G8 is a brand new model also, again... $4000 more in Canada vs. the U.S.

Your excuses are getting thinner by the minute. There is no reason GM can not move MSRPs closer or equal to U.S. MSRPs. None. If Chrysler can, GM can.