RenRed2
Well-Known Member
- Joined
- Aug 1, 2021
- Threads
- 9
- Messages
- 865
- Reaction score
- 1,310
- Location
- FRA - a big airport lol
- Car(s)
- 22 BMW M240i / 23 BMW M2
True and kill the mass sales market they built over time. If they go too far with this = competition from other FOREIGN makers who will simply under cut them. The Big 3 are fools if they think this is a wining long term move lol. Its simply opening a door to be abused by your competition.If you’ve been watching the news both Ford and GM have come out and said they will be changing their business model. Dealers used to have a 90-120+ day supply of cars on the lot. No more. Dealers will be allowed to have about a 30 day supply goimg forward. This has nothing to do with semiconductors.
They have realized that by keeping supply very low they don't need rebates and incentives. If you look at their profits over the last year, profit is up even though they are selling fewer cars. They are also able to raise prices and push people into more expensive vehicles due to demand and by not having excess stock of lower cost vehicles that have little to no profit (and might even be a loss for them if they have to push big incentives to sell them).
Expect more car manufacturers to follow. Makes sense. Keep deman up by low supply and make more money.
Sponsored