Other Editorials

Distress Duress

Jim Dollinger
Friday, January 13, 2006

NEW YORK -(Dow Jones)- Wachovia Corp. (WB) could reach a deal to buy a stake in General Motor Co.'s (GM) finance arm as early as this month, according to the Charlotte Observer.

GM's chief executive, Rick Wagoner, said Sunday during the International North America Auto Show in Detroit that the company is trying to find a buyer as quickly as possible. The situation, he said, "doesn't get better with age."

So now, as Red Ink Rick conducts his Red Tag Sale on GMAC:

LaNaive calls for simplified pricing and a lessened reliance on incentives. I take exception, the deception perception foils the conception reception. In other words, most vehicles cost more now under the reduced price and reduced rebate and dealer margin, than they did last month at the higher MSRP. That's a Total Value Promise????

New program Tuesday, get out of your lease early if your contract ends by 5-17. Up to 8 months past, pay the remainder. Rumor has it that this will be an ongoing program with shifting dates. Specifics to be deciphered once dealers sort through the new pricing, and decode new rebates and lease incentives. I predict one of the worst Januarys on record for GM, even with the new Tahoe and Yukon, and other products like the new Impala and Lucerne becoming available. The only niche we are certain of increasing share of are the Philadelphia lawyers, as they are the only ones with half a chance of figuring this mess out.