GM Halts Chevy Volt Production Because Sales Suck

[daddy]

X4

 

[That Crazy Squirrel]

x3

GM has the biggest damn hold over them possible, "Sorry, we're revoking your franchise for price gouging. We won't sell any more products to you. Check line xx of page xx, section x of your franchise agreement for full details."

...and they'd get their asses sued off because it's a "suggested" retail price not "you have to sell it for this price, because we say so and we own you" (because they don't).

And, under the current system you're 100% correct. But that wasn't my point. My point was that GM could change that if it wanted to. GM could quite easily stipulate in the franchise contract that no vehicle could be sold for more than MSRP. Don't like it? No one is forcing you to be a dealer. That GM chooses not to do something like that does indeed make it partially their fault that dealers charge such premiums. Which gets us back to where this part of the thread got started.

 

[daddy]

Why is it upon GM to run a dealer's business? Would it be nice for consumers, sure. Is it unethical to allow a retailer to sell their own purchased inventory at whatever price they choose, no.

 

[Darkanion]

And, under the current system you're 100% correct. But that wasn't my point. My point was that GM could change that if it wanted to. GM could quite easily stipulate in the franchise contract that no vehicle could be sold for more than MSRP. Don't like it? No one is forcing you to be a dealer. That GM chooses not to do something like that does indeed make it partially their fault that dealers charge such premiums. Which gets us back to where this part of the thread got started.

They're just the manufacturer.. They make stuff and sell it to the dealers. What the dealers do after that is up to them..

You can bet Sony doesn't "tell" Best Buy "you can't charge over this price" for their TV's, amplifiers, etc. I'm sure Coke doesn't tell your local grocery store "you can't charger over this price.." So, why should GM, just because you don't like it? If you don't like it, don't buy it!

If the Jay Lenos of the world want to over-pay to have the "first" Acura NSX, LET 'EM! Maybe if the dealers make more money on those fools, I can get a better deal when I come in to buy something!

 

[daddy]

Generally, Minimum Advertised Price (MAP) is about all you'll ever see from a wholesaler. If the product sells too cheap, that's bad. If it sells for more, that just shows they can jack up wholesale costs.

GM is all for this behavior given it makes them look really good no matter what. They aren't the bad guy, but their product is HAWT!

 

[That Crazy Squirrel]

Why is it upon GM to run a dealer's business? Would it be nice for consumers, sure. Is it unethical to allow a retailer to sell their own purchased inventory at whatever price they choose, no.

Because the dealers aren't just independent businesses, they're franchises. The franchise organization exerts a lot of control over how a franchise can be operated.

 

[Sodbuster]

X4

I like the X5 myself....

 

[daddy]

Why is it upon GM to run a dealer's business? Would it be nice for consumers, sure. Is it unethical to allow a retailer to sell their own purchased inventory at whatever price they choose, no.

Because the dealers aren't just independent businesses, they're franchises. The franchise organization exerts a lot of control over how a franchise can be operated.

GM is dumb for sharing money with the franchises then if they are required to run the damn thing.

You just sound like you are pissed because this might put a car you want out of your financial reach. Those cars with the premiums, guess what, they still sold. If they didn't, the price came back down. That's how it works.

Would you have been as okay with them setting prices had GM stepped in and told dealers they couldn't cut prices back in '08-'09 and forced all of the dealerships to go under? I mean, GM wouldn't want to devalue their product so as the franchiser they should have stepped in, right? I mean, it's their business to run, not the guy with the money invested and the guy with the employees, right?

 

[That Crazy Squirrel]

Why is it upon GM to run a dealer's business? Would it be nice for consumers, sure. Is it unethical to allow a retailer to sell their own purchased inventory at whatever price they choose, no.

Because the dealers aren't just independent businesses, they're franchises. The franchise organization exerts a lot of control over how a franchise can be operated.

GM is dumb for sharing money with the franchises then if they are required to run the damn thing.

You just sound like you are pissed because this might put a car you want out of your financial reach. Those cars with the premiums, guess what, they still sold. If they didn't, the price came back down. That's how it works.

Would you have been as okay with them setting prices had GM stepped in and told dealers they couldn't cut prices back in '08-'09 and forced all of the dealerships to go under? I mean, GM wouldn't want to devalue their product so as the franchiser they should have stepped in, right? I mean, it's their business to run, not the guy with the money invested and the guy with the employees, right?

I haven't owned a car in more than a decade T, and have no use for one, so let's call that part of your response null & void, shall we?

My only objection is, like Jim's, to price gouging.

 

[Nick The Great]

Many manufacturers set prices for vendors. I think Stihl does that for their products. Smaller scale, of course.

And who GAF if Jim's Chevy World over charges for things. They have to live with the consequences of people not buying.