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Re: At this point I believe that the unfortunate truth Posted by Justin VanAbrahams [Email] (#32) [Profile/Gallery] (more from Justin VanAbrahams) on Fri, 5 Dec 2008 14:42:50 In Reply to: Re: At this point I believe that the unfortunate truth, Caarma [Profile/Gallery] , Fri, 5 Dec 2008 13:32:59 Members do not see ads below this line. - Help Keep This Site Online - Signup |
I think it's a really complex issue, but it would be interesting to model. I mean, being able to buy a $15,000 Malibu would DESTROY the foreign used car market. Why consider even a 3 year old Camry that's depreciated to $15k when that's a brand new car from Chevy? That could hurt a lot of people. There might be political fallout.
The easy solution is loans or grants to the Big 3, but I personally have no interest in giving them money to keep doing the same thing, because obviously it isn't working. Money in their banks is probably just delaying the inevitable... a strong GM will not motivate me to buy anything they're selling. But their issues really aren't product-based - I'd be hard pressed to point at any domestic car and flat-out call it a POS. Maybe (*maybe*) not quite as good as some foreign products, but we're not talking night & day. The primary issue is consumer perception, and government loans won't fix that. You need to fix the consumers of the products, give them a reason to try and/or buy. Rebates might address that.
How consumer rebates get into GM's pockets is a concern, but I'm sure there are avenues to address that.
posted by 12.71.42...
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