- Jun 10, 2006
Promises for fire-sale-free year might be broken
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]