um........er.......uh...... I dunno?

 

What no winkie?

 

If someone NEEDS the winkie here, it shows they are NOT in the 'winkie club'





PS I know you were just joking

 

-just for yah BigDarknFast

 

I got mine!

 

Ok, this doesn't make too much sense. On in one hand you can sell 250K units for $2K more than last year. Or in the other hand you can produce 60K more units, but loose $2k per unit. To me selling 60K+ more units = more money than $2K more per unit at 250K.

 

Well if their profit at 250k units is $4,000 per car then 250k * 4000 = 1 billion.

Crank up production and get $2,000 profit per car 310K * 2000 = $620,000,000. Less profit on a bigger investment.

I don't think these cuts are going to mean that there will be crowds of people begging and rioting for impalas. I think these cuts will just mean there will be fewer of last years models sitting on dealer lots come January 2008 being sold at cost just to clear them out.

 

It makes more sence if you think about it like IREngineer and guionM said. Limiting production frees up room for other cars. Plus the '08 Malibu is expected to pick up some of the FWD Impalas slack and the RWD Impala is only about 3 years away.

 

Don't worry, you certainly won't be the only one. On the surface, the concept defies all logic & if used for a hot selling, high demand vehicle, the idea falls flat on it's face.

But on a high production car where most sales are to the fleet & the rest have to be discounted, and where cars coming off lease have low profit margins at resale, and the plant is almost doing nothing more than sustaining it's costs, the whole plan makes alot of sense.

It will almost certainly work on a Impala or Malibu, but it wouldn't on the new GMT900, a Corvette, a Mustang, or even a Chrysler 300.

 

I wonder if this is a move to get prices up towards their target for the new Impala.

 

I actually laughed out loud when I read this.