Are the dealers “lean on inventory?” The Camry outsells the Malibu by at least 2 to 1 (3 to 1 during August C4C Madness), yet Malibus, for example, in local inventories seem to outnumber Camrys by 1.5 to 1.

Too many low-quality loans will wreck a company.

Incentives may be the only way that certain consumers can afford a new car and perhaps help create an unsustainable market.

Incentives aren’t bad, if they’re manageable. GM’s average incentives are $3,278. The average new car price is $26,300. Add that three grand back in and GM’s incentives are over 11% of the price of the car. That isn’t manageable.

If their prices were not too high they wouldn’t need taxpayer bailouts, whether in the form of direct payments (oh, sorry, “loans”), seizing capital from bondholders, or not-cash for clunkers bailouts.

Their too-high prices are being propped up by one gimmick or another, so that the taxpayer overpays not only when buying the product, but in paying taxes and taking on debt for his kids and grandkids.

And I should feel bad when they have to offer their meager incentives, little changed in actual value over the last decade, while their MSRP prices are rising, several times over the last year, and again as I type?

Frankly, I can’t think of an industry that doesn’t give deals when sales are slow.

Would a switch to one-price, no sales gimmick pricing work for a brand? Saturn tried it, and it worked until its cars got so stale that no one wanted them anymore.

Maybe there’s an opening here for someone, though I’d guess it’d have to be a niche brand like Subaru or VW. The GMs, Toyotas and Fords of the world won’t stop the rebate gravy train any time soon.

In the car production world you don’t add a shift to fill a short term gap,when OT will do the trick.

What they will produce are the most popular models with the best option group. I’m sure that the plan is to have these move quick and provide cashflow.

Time for New GM Bankruptcy Watch…