Saturday, July 09, 2005

And they're off..............It's the race.........

to the bottom!

GM Will Extend Employee-Discount Offer; Chrysler and Ford Follow Suit
Edmunds.com
07-05-2005
DETROIT - GM announced the extension of its wildly popular employee-discount program. In rapid succession, Chrysler and then Ford announced employee-discount-to-all plans of their own (continued)...

Chrysler has even brought Lee Iacocca (Watch this.............IACOCCA: I Am Chairman Of Chrysler Corporation America) back.

According to Edmunds.com

It also didn't end up costing the company much more money than previous promotions as GM's incentive cost per vehicle rose just $136 to $3865 in June, said research firm Edmunds.com.
"The company had an outstanding sales month while only marginally increasing its incentives spending, having lowered cash rebates and special financing programmes in order tosubsidizee the promotion," said Jane Liu, vice president of data analysis for Edmunds.com

Dude, or Dudette, I should say, didn't GM already lose about $1.98 billion from operations (i.e. actually making cars as GM is an automotive manufacturer for those of you who didn't know) and a $1.1 billion net loss in the first quarter of 2005 (so your financing arm made you some cash.........Yipee!) so what is another $136 a car for the month of june. GM sold 550,829 vehicles in June, so if my math serves me correctly, this is another $74,912,744 in costs. Did GM negotiate additional volume discounts from suppliers? I hope they at least got another $75 million worth

-so your companies are having a few business issues, your debt rating takes a shit-kicking.................and you start cutting prices. Yes, your sales have increase, but is this profitable? What sort of pension short fall do you guys have? What are your health care costs? Hey GM, isn't your largest production cost per car your pension plan or is it health care.......should it be steel or maybe wages?

Why aren't the Japanesee or Europeanss (I don't see the Daimler part of DaimlerChrysler AG cutting prices)? How about this idea..............build better cars!!!!!!!!!!!!!!!!

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