Lutz: Camaro profits $8K-$9K higher per car than forecast.

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Jan 15, 2010 | 08:01 AM

#31

JakeRobb

Super Moderator

Joined: Jul 2005

Posts: 9,507

From: Okemos, MI

I wonder, if the MSRP was lower, would dealers compensate with higher markups?

Quote:

Originally Posted by graham

Some part of me thinks that Chevrolet doesn't pay average retail for their parts

Sure, but the suppliers make a profit too...

Jan 15, 2010 | 08:50 AM

#32

1fastdog

Registered User

Joined: Jul 2001

Posts: 1,808

From: FL/MI

Quote:

Originally Posted by graham

Some part of me thinks that Chevrolet doesn't pay average retail for their parts

Neither does the buyer of the car pay retail for the parts installed at build.

I'll grant it's a retail transaction, but the customer gets a winning package deal in the process as well as a sweet warranty on the whole thing..

Last edited by 1fastdog; Jan 15, 2010 at 10:45 AM.

Jan 17, 2010 | 12:02 PM

#33

5thgen69camaro

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Joined: Dec 2005

Posts: 2,802

From: Annapolis MD

Quote:

Originally Posted by SSbaby

So can we reason on the basis of the margins made, that if the Camaros weren't priced as high, the sales figures would be even higher?

Supply/Demand

I dont think so. Maybe a little bit. They are selling what they produce, although our local dealer has one in the showroom thats been there for a while. I think its 40k for a 1SS. I dont know what other options it has but not for me. Seems like they would have to ramp up Supply which wouldnt make sense as demand eventually drops and stablises somewhat

If the MSRP were lower (Manufacture SUGGESTED Retail Price) then because of our laws where the Manufactures cant tell Dealers what to charge, dealers would probably use markup to make up the difference of what people are willing to pay right now.

As Demand tapers off though, their going to have to lower prices, or sit on their supply and hope its worth it to keep those cars unsold to get people in the showrooms to sell their other cars.

Jan 19, 2010 | 06:41 PM

#34

95redLT1

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Joined: Dec 2002

Posts: 1,505

From: Charleston, WV

I think they need to replace "profits" with "average transaction prices"

Quote:

Lutz, vice chairman and an adviser to interim CEO Ed Whitacre, said Wagoner's gut-level decision led to an average transaction price for the Camaro that's $8,000 or $9,000 more than what GM had anticipated.

http://www.autonews.com/article/2010...#ixzz0d4qz5Yad

Jan 20, 2010 | 12:10 PM

#35

Z28Wilson

Registered User

Joined: Aug 2000

Posts: 6,165

From: Sterling Heights, MI

Quote:

Originally Posted by Z284ever

I think there may be abit of oversensitivity to the "overpriced" comment. As long as the customer perceives a good value proposition - what's the problem? Does anyone think it costs GM $50+ grand to make a Corvette? But people pay that and more everyday, with a smile on their face. Nothing wrong with making a profit.

Exactly. Apparently GM is still selling them as fast as they can build them, so I don't see the problem with it. At least, not right now.