Big 3 dealers get swamped

With all three domestics running employee discount specials, dealers have to deal with an
influx of customers. We have heard of GM sales people pulling seven day work weeks through June and July. These new
programs have helped GM increase their sales significantly. Ford and Chrysler are seeing showroom
traffic increase as well. The success of these programs today may lead to problems tomorrow, however. You can
already see how aggressively discounted trucks and SUVs have affected the used market. Fuel prices, the complementary
good in this case, affect are this segment of the used market too. Regardless, you can bet that the foreign makes are watching this activity very
closely. If most of these buyers have a positive experience with their new domestic, it may help change the fortunes of
the Big 3 (or Big 2.5). Further pricing changes would certainly seal the deal and mitigate the problems with resale
values and endless incentives. GM has confirmed that its 2006 models will be priced lower, and Ford has indicated its
pricing is competitive with its new Fusion. Chrysler has been relatively successful with the pricing of its large
sedans, but the rest of its line may need a permanent price adjustment. Regardless, if you are just looking for a new
car, it is worth looking at the options available at Ford, GM, and Chrysler lots.

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