Quote Of The Day: Don't Hate The Playa, Hate The Game Edition

The problem any automaker has is that they get paid for the vehicles as they are invoiced to the dealers and paid, no tickey, no laundry. Then when a vehicle is sold by the dealer the dealer fronts the cash to make the deal happen and then waits for the mfg. to pay the money in maybe 30 days. So I believe that many dealers are wondering as they sell vehicles and front the rebate money. How long is it going to be before GM and Chrysler actually send them the money. If I was dealer I'd be very careful about how much of "MY" money is going out the door and putting vehicles in customers driveways that I might not ever get back. I'd like to see a confidence poll of GM and Chrysler dealers on that one. Another thing is that as rebates shrink due to dealers concerns about this issue, they also allow the healthier mfg.'s to cut back on their rebates and use the cash to show more profit and build consumer confidence target their cash where it is most useful. Hey? How's the Volt coming?

She happens to be right about incentives. Originally designed to protect the integrity of the product, GM was to loose with them in the past. What resulted was incentive buying, meaning that unless they were offered consumers didn't buy. That did not protect the product value. So now what happens? Do you play your hand with the new GM that it's not necessary to wholesale anymore, and hope it works, or do you start the vicious cycle all over again, for fear of volume?

Can't make up quality perception (reality) fast enough, market share is going to hell in a hand basket (witness share of C4C), what else you going to do other than put cash on the hood and ask the customer to please take it? I am convinced that these people have no clue about breaking this downward spiral. Their only answer is to take yet another GM lifer and throw them to the head of the campaign. This by definition is insanity. I wish to thank both Presidents Bush and Obama for perpetuating this disaster in the making! In the past when a company failed it filed for bankruptcy and its management team was cleared out for the sake of a fresh perspective. Spin off the profitable Latin American and Asian divisions to the US Taxpayer now and let the rest of this mess die!

Do I read the american new car market like this. The dealer buys(?) a car with their selection of options/colours fitted from the manufacturer, in the hope of selling same vehicle to a prospective buyer. If that buyer wants something different they have to source that vehicle from another dealer who had the forsight to build the car to that specifications. Then the manufacturer discounts the car direct to the buyer (cash on the hood) so that he/she pays less money to the dealer that has already bought the car at a discount? Have I got that right, because I'm used to the system here where the dealer has some floor stock but the majority of vehicles are built to customer order, shipped to the dealer, the dealer does his prep for $$, does the paperwork (rego etc..goverment $$). There is none of the dealer only having this vehicle with these options for sale. Except for euro imports, if you order a special, that's about 6 months away. Please correct me If i'm wrong in my assumptions.