• Jun 10, 2006

Consumer confidence is slowing down, as are vehicle sales if the month of May was any indication. A storm is brewing... one that might just result in a reversal of certain promises made by Ford, General Motors and Chrysler to the effect of, "read our lips, no big rebates."

Analysts are predicting that the environment is such that the Big Three will have no choice but to institute new rebates of epic proportions to move the cars stacking up in the reserves and to give sales a jolt. And this time around, Ford will be the one that starts the party with the $4,000 it recently slapped on the hoods of some of its models.

The move could put the industry back in a desperate position, where dealers are making very slim margins and automakers are losing thousands of dollars per sale.

[Source: Reuters via Automotive News]

 



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  • 42 Comments
      • 8 Years Ago
      Leave it to lithious to screw up an iPod! LOL

      In what drug induced haze did the Saturn Vue's interior get better than the Honda's lithious? The Vue has had the cheapest interior on the planet since its introduction.
      • 8 Years Ago
      "I want a good deal!!!!!!!!!!!"
      "F**K the Dealer!!!!!!!!!!!!!!"
      "I was screwed!!!!!!!!!!!"
      "I want a cheap car!!!!!!!!!!!!!!!!!"
      "I want great reasale value and steal the car from the dealer!!!!!!!!!!!!!!!!"
      "I want a 10 year 100,000 never pay anything warranty that includes free service!!!!!!!"
      "I won't buy a domestic even with a warranty!!!!!"
      "Toyta does it better!""""""""""""" Oh, no not another Toyota recall!!!!!!!!"
      Computers, houses, appliances,tires, paint, cell phones, you name it, goes on sales and has rebates, BUT the car businesses is WRONG, WRONG, WRONG to slap money on the hood and sell more product.
      "They should sell at MSRP!!!!!!" ever think there was a time there was no MSRP on cars, but then poor consumers needed help not to get screwed, but wait "The marketplace sets the price anyway"

      Just exactly what F**K do you spoiled I want, I want, I want, children want anyway?

      I know EVERYTHING! And you'd still find something to bitch about.

      Slap 4,000 grand on the hood, people will buy it.
      • 8 Years Ago
      The Big Three? I'd rather call 'em...

      The Desperate Three
      • 8 Years Ago
      "Americans don't even know who George Washington is anymore, how are they supposed to understand whether one car is as good as another?"

      So GM needs to slap huge incentives on their cars to sell them because Americans are so dumb? That is such a compelling argument. Maybe GM could send some of their jobs bank people to Toyota and Honda lots and have them call shoppers there idiots. That should shame those folks into going somewhere else.
      • 8 Years Ago
      And ask yourself who builds the VUE's V-6?

      GM did/does not trust its own engineers, so they buy those V-6's covertly from Honda. Just ask your Saturn dealer where such a WONDERFUL V-6 comes from? He/she will hem and haw and stutter like a grade-school child, as the very fact that GM buys V-6's (and the automatic transmision, I might add) from a competitor is a complete...

      ...embarassment!!

      Keeping up with the Jones, huh, GM? Or are you simply putting on airs?

      http://thetruthaboutcars.com/content/1149731329491774843/index.php
      • 8 Years Ago
      Ford, GM and Chrysler = CRAP
      • 8 Years Ago
      Imagine that. Ford and GM have to throw money at customers in order to get them to purchase their products. And now they are going to break a "promise". Surprise surprise.
      Sarge
      • 8 Years Ago
      I am in the market for a new vehicle. I went to the Ford dealer today and test drive the 06 Explorer and 06 Montego AWD. Many to chose from on the lot. I am not impressed with the vehicles. I visit 2 Toyota dealers to look at the 07 Camry XLE V6 and there are zero in stock. These cars are flying off the lot with no incentives or special financing. The Toyota interiors are 100x better. GM and Ford has to realize that their crap interiors are killing them and they will never improve sales until they realize this. They have made improvements with the Tahoe and what appears to be the new Saturns but they have a long way to go to catch Honda and Toyota.

      Ford giving 0% financing plus alot of cash off still can't get me to buy one. If GM dropped prices to match Ford, I may be tempted but I refuse to touch a GM product without heavy incentives. It would take alot to make me look the other way into a GM vehicle.

      I agree...A 5year warranty to match Hyundai would be a major confidance booster for consumers

      GM give me 0% and cash back or sink with Ford!
      • 8 Years Ago
      I had a Ford Explorer on a 3 year lease. No problems. 2 Ford Windstars, on a 3 year and a 63 months leases. No problems. My 2000 Taurus is over 6 years old, and still not a single repair other than replacing tires, widshiled wipers, etc. My daughter has a 2003 Pontiac, and my wife has a 2005 Chevy. Ditto.
      I do not neccessarily doubt the honesty of those who report foreign cars as higher quality. Maybe I've been unusually lucky. But, how much higher can quality get than all those years without any repairs?
      Coupled with my 1971 Toyota Corolla being the worst car I ever had, even worse than my 1982 Volvo, it makes me wonder if this disdain for American cars (and everything American) is just another of my generation's "contributions".
      Our parents built the greatest economy, the greatest military, and through technology a better world for everybody. And they did really rather have a Buick! My generation contributed crack cocaine, AIDS, and a disdain for everything American. Maybe they'll call us the termite generation.
      • 8 Years Ago
      They should be focusing on selling a quality product people actually WANT. Not trying to suck people in with wide-eyed rebates.

      Ford or GM just wont learn will they. One "good" car (Corvette, Mustang) wont save a company. I can throw a dart at a board covered in every new car offered by Honda, Mazda, Subaru, Toyota and I would be happy with whatever I get. Do the same with Ford and GM and the odds are I will be disapointed with some fleet car peice of junk.
      • 8 Years Ago
      Wow, in Lithous' parallel universe, domestic cars are top-notch and iPods are junk. Lithous, are you from Htrae (AKA "Bizarro World")? Methinks yes.
      • 8 Years Ago
      OK, #28, you write:

      "I prefer to discuss them from the point of owning them, and talk about my own personal experience over many hundreds of thousands (or millions) of miles."

      Let's hear about your personnel experiences about owning Japanese cars. You certainly seem to have opinions about them. (And as for your "let me clue you in on how things work in Japan" comment, I owned several old Japanese cars in Japan and they always passed Japan's strict "MOT" inspection. I did NOT have to buy a new car.)
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