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2020 corvette price is a loss leader


fordtech1

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7 hours ago, akirby said:

GM sells $60k corvettes and lose money.  Ford sells $450K GTs.  Tell me again how GM has a better plan than Ford?

 

You might be on to something here. GM could closed the Bowling Green KY plant, put roughly a thousand people out of work, and out-source the build to a company like MultiMatic in Canada.

 

HRG

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19 minutes ago, HotRunrGuy said:

 

You might be on to something here. GM could closed the Bowling Green KY plant, put roughly a thousand people out of work, and out-source the build to a company like MultiMatic in Canada.

 

HRG

 

So, your suggestion is to keep a plant going even though the product loses money? Man, I am glad you are not a financial adviser. 

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7 minutes ago, twintornados said:

 

So, your suggestion is to keep a plant going even though the product loses money? Man, I am glad you are not a financial adviser. 

 

No, my suggestion is to see the $60K pricing as what it is, a "carrot" to the marketplace to help acceptance of the new configuration, and to avoid getting slammed in the press for a huge price increase. I'll bet within a couple of years the base price increases, as well as the break-even cost to produce decreases, as manufacturing gets more efficient with the new design.

 

Heck, who ever thought that a "Mustang" would be built in Mexico?

 

HRG

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1 hour ago, HotRunrGuy said:

 

You might be on to something here. GM could closed the Bowling Green KY plant, put roughly a thousand people out of work, and out-source the build to a company like MultiMatic in Canada.

 

HRG

 

They could get just as much buzz with a $70K base price and it's easily justified by the performance.   They might lose a few sales but it wouldn't hurt profits.  This low base price might hurt residuals and resale value though.  

 

They just seem more concerned with sales volume than actual profits as evidenced by all of their decisions over the last 30 years.   Just GM being GM.

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1 hour ago, akirby said:

 

They could get just as much buzz with a $70K base price and it's easily justified by the performance.   They might lose a few sales but it wouldn't hurt profits.  This low base price might hurt residuals and resale value though.  

 

They just seem more concerned with sales volume than actual profits as evidenced by all of their decisions over the last 30 years.   Just GM being GM.

 

The article says that the price needs to rise significantly for the Corvette to make money. The new Corvette seems to be a great car, but I'm not sure that the target market will accept that level of price increase. But I also can't see the accountants tolerating losses on each Corvette sold for very long.

 

Somehow, I don't see this ending well...

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1 hour ago, twintornados said:

 

They were built in San Jose California and Metuchen New Jersey...

 

Technically Edison,NJ....or Little India, since there is a large population of people from the Indian Sub continent there now. 

 

And the Plant is now the site of a Costco...

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1 hour ago, rperez817 said:

 

Yes sir. Any car with a production rate of 250 per year is going to lose money on every or nearly every unit sold.

 

lol, are you kidding me?

 

 

For a quick example, this brand would beg to differ.....

 

Image result for ferrari logo

Edited by rmc523
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Why is GM's stock higher than Fords again?

 

I just dont understand this company... Or the people that buy their crap. 

 

For all Ford problems, atleast they didn't need a bailout. And while I disagree with them leaving the small car market, at least their products actually make money. 

 

GM really needed to start at 70k atleast. As others have mentioned I definitely see that price raising in the future. 

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GM's stock was at $40/share in 2007 while they were losing money left and right and less than a year away from bankruptcy.   Tesla hasn't come close to a full year profit nor do they have any real plan to get there yet their stock price is $329.  

 

Stock prices have almost nothing to do with a company's financial health and long term viability and everything to do with short term gains and public popularity/trendiness.

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