The Grope of Dopes
Wednesday, January 11, 2006
The result of this repricing decision will be as bad, if not worse, than GMS. The confusion reigning in the stores right now has ground business to a halt. The incentives are so mind twisting, customers are being told to wait until the dust settles. Hardly any actual selling is occurring. There are pricing programs whereby the old window stickers stay, but new prices are to be posted alongside. (Someone at GM has a brother in the printing business). There is dealer cash to be used against old invoices. New merchandise will have different residuals. The same unit differs in payment depending on when it came in. If GM were ever to have done, this it should have been in conjunction with a model year change. The results of January will be horrific as neither LaNaive or Wagoner knows anything about retail. Sales will definitely tank and more losses will rack up. Of course. LaNaive can always claim later with his hindsight that it was a mistake. This particular move by the incompetent marketing executives may be the final step in GM's self destructive path to bankruptcy.
Return to Greatness would have allowed a logical regression from incentives, picking up goodwill and making profit in the process. But of course the bungling band of brand butchers would hear none of what America's top salesman has to say.