Originally Posted by falcon
" Already inflated sticker price" I really don't think thats the case, true they lured a ton of customers in with the employee pricing deal, but at what cost, they lost 1.6 billion dollars for the quarter I believe. GM needs to get closer to to sticker to start making money. As soon as there are no incentives out there, the cars pile up at the dealers. GM has many, many serious problems to deal with. They needed to start working on these problems when their market share started drifting down years ago. But they didn't, now I actually think that bankruptcy is a real possibility because or it.
Therin lies the catch 22 GM is stuck in..... no one in their right mind will pay anywhere near sticker for a GM car, so in order to move them they have to slash prices. By slashing prices, they can move the product. In the process, they loose profit, but if they don't slash prices, they don't sell.
Which is why GM's only option is to declare bankruptcy, and once reorganized, they must produce cars which people are willing to buy not because of price but because of product.
Today's world demands results in both product and profit..... not one or the other, but both.