Re: G M is still number one in 2006

You can believe whatever you chose. The industry wide fleet discount averages around $600 if one buys more than five. There are additional discounts available to governments fleets that buy hundreds but generally they are no more than an addition $600. Many of the rebates offered to individuals, by domestics and imports, are far greater than $1,200. In any event the sale must go through a dealership no matter what you believe.

Ford, in the late nineties, bought back some of its franchises from the older, smaller, 'mom and pop' dealerships to build big stores to operate as company owed stores, in competition with franchised dealerships. The Nation Ford Dealer Council, of which our group was a member, stated franchise infringement litigation. The court issued a cease and desist order and instructed Ford to divest themselves of the stores

mike hunt

> >>You are confused, it is a violation of franchise law for a manufactures to >>sell their vehicles to anybody but their dealers. The dealers are who >>sell >>or lease to buyers, individuals, fleet, rental car companies who ever, the >>sale must go through a dealership. All dealer, buy law, buy from their >>manufacture at the same price. What difference does it make to >>manufacture >>or dealer, who buys or leases their vehicles? > > Because they make less money on fleet sales because they are > discounted. I don't know the franchise laws but I do know that all of > the news sources seem to agree that fleet sales are less profitable to > the manufacturers than individual buyers"
Reply to
Mike Hunter
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I don't care whether they go through a dealership or not. The bottom line is that GM and Ford are getting a lot less money off fleet sales. All the knowledgeable sources which I posted (and which you conveniently clipped) agreed on this point. you so make a point that they are also heavily discounting retail sales as well. Bottom line is that no one will by the cars unless they are sold for less than the total cost of production. Hence GM's predicament.

Reply to
Gordon McGrew

You must be a fool if you think $600 or even $1,200 is a 'lot less money off fleet sales,' or trying to kid somebody, if you believe GM and Ford are selling any vehicle for less than production cost. LOL

mike hunt

Reply to
Mike Hunter

However, production costs do not include the cost of health care or pension costs for retirees.

They may sell cars at less than production cost for left overs or poorly selling models. But this is an exception.

Jeff

Reply to
Jeff

At least say in my opinion, you are entitled to that. I worked as a design engineer in the automotive industry for thirty years, and I can tell you when it comes to building vehicles you have no idea what you are talking about. No manufacture ever sells a vehicle for less than the production cost. They may not be selling enough of their vehicles to cover their costs of doing business at a particular time, but the retail pricing is related to market forces not the build cost. It cost only a relative few dollars more to build a V6 $40K Lexus than a V6 $25K Camry, that is built off the same chassis, for example

mike hunt

Reply to
Mike Hunter

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