: Will GMs current plight effect MSRP?



jashearer
10-10-08, 10:05 AM
So I can't think that GM wouldn't want to get every last dime out of the V2 considering the state of their books.

What do you think the chances are of them trying to take a piece of the possible dealer mark-up and setting the MSRP closer to $70k?

I know most people think this would be an outrage and would cut sales immensely, but I just don't think GM can afford to not make a lot of money on this car, and it obviously won't be volume making the profits on this machine...

Jay

CIWS
10-10-08, 10:12 AM
No . . .

caddiedrummer
10-10-08, 10:22 AM
It ain't just GM's current plight. For people with deposits down like me who have lost 1/3 of their 401k in 2 weeks, I wonder how many of us will/have cancelled orders. I am teetering on canceling. I may wait this thing out. History tells me the market will improve and maybe by the time it does these things will be well below MSRP.

CIWS
10-10-08, 10:24 AM
It ain't just GM's current plight. For people with deposits down like me who have lost 1/3 of their 401k in 2 weeks, I wonder how many of us will/have cancelled orders. I am teetering on canceling. I may wait this thing out. History tells me the market will improve and maybe by the time it does these things will be well below MSRP.

This I can see happening. Folks needing to wait now until the world economy stabilizes and credit markets have more flow.

StealthCTSVJJL
10-10-08, 10:35 AM
Two sides to this, waiting might be prudent, considering the financial crisis which is going to trickle to everyones pocket at some point. However with GM, Ford and Chrysler running out of cash for 2009 and bankrupcy on the horizon, the V2's run may be short. These types of vehicles are the first they will stop producing when the sh.. hits the fan next year.:(

jashearer
10-10-08, 10:38 AM
No . . .

Ha! You seem pretty certain... I wonder how much of that certainty is based on the fact that you have a deposit down on one...

I think if they weren't still wrestling with what to do they would have released pricing a long time ago...

I'm a bean counter at the worlds largest tractor manufacturer and I can garuntee you we took every opportunity to share our raising input costs with our dealers when we were setting prices for 2009...

GM will have to do the same but they also have to add in the complexity of getting their feet back on solid ground, which is one we haven't had to face yet thankfully.

Jay

dqw1
10-10-08, 12:44 PM
I think GM's current financial situation and this crazy market has everything to do with them not pricing this car yet. How can you be within a month of production and not have a price??? With credit lending being tight I think all bets are off. We'll probably get an 09V and hopefully the price won't go up to high. I'm more worried about dealers trying to make up losses by marking this car way up.

RightTurn
10-10-08, 01:19 PM
I'm more worried about dealers trying to make up losses by marking this car way up.

:confused: With tight credit and no sales, why on earth would they do that??

Vrocks
10-10-08, 01:21 PM
Demand is weak right now so pricing the car on the high side of what ever range they were considering isn't likely.

When I drive around to BMW dealerships I see alot of M3 sedans and coupes sitting on the lot. It won't be different for the V2 because it's a "fun / excess" type of vehicle. There's nothing wrong with having a fun car but when things aren't going well it's a purchase people can't make unless the price is well inside what they can afford at the time.

The leasing rates suck too... even people with over 7xx credit scores and a good paying job are having issues getting financing on cars that cost less than the V2.

Expect it to be at the low end of GMs acceptable range and sales will still be sluggish. Especially until the credit crisis subsides a little, which should happen in 2 - 3 weeks when the fed directly buys into our national banks (about a 2 - 5% purchase at a cost of between 200-300 billion). That is another key point in getting some liquidity...

dqw1
10-10-08, 01:36 PM
:confused: With tight credit and no sales, why on earth would they do that??
I've never been shocked by what some dealers do to make an extra buck. Just like Wall Street. A friend of mine went to price an 09 CTS this week and they tried to mark it up on him. He walked and he said he only been 5 minutes down the road before they called and said they would take the 2k off they marked up to make the sell. That's why they do it to see if you'll pay.

RightTurn
10-10-08, 02:13 PM
"Extra" buck? If the cars aren't selling, they are making "Zero" bucks. I don't see the correlation to Wall Street, but whatever. The entire economy is in the crapper; luxury vehicles will be the least of our worries in the coming weeks.

csp3000
10-10-08, 04:32 PM
It ain't just GM's current plight. For people with deposits down like me who have lost 1/3 of their 401k in 2 weeks, I wonder how many of us will/have cancelled orders. I am teetering on canceling. I may wait this thing out. History tells me the market will improve and maybe by the time it does these things will be well below MSRP.

I also took a massive hit myself in the market. I lost about 70% of what I had in the stock market. I am very lucky in some ways that my time horizon is well more then 5 years till I stop working so I didnt need to cash out of my stocks and I can ride this out. But that being said all this chaos has deff tightened up my liquidity in my money. I am the first one at Tony's dealership to get the 09 but I am starting to get worried about credit and the MSRP of the new V.

Cadillac Tony
10-10-08, 04:43 PM
Guys, guys......seriously.

GM has already all but told every magazine and Web Site what the price of the car will be. Changing market conditions, stock values and the credit market require solutions much more grand than raising the price of one limited production car by a few thousand bucks. If anything, it's the "meat and potatoes" cars like the Aveo, Malibu, G6 and V6 CTS that sell in huge volumes that will help foot the bill for rising material costs- raising invoice on those $500-$750 x 500,000 units will generate tons more cash for GM than than an extra $5,000 to the CTS-V on a paltry 6,000 units ($375mil versus $30mil for those keeping count at home). I'm sure they'll also be leveraging some incremental price increases in China (where they're selling more cars than in the US).

Relax, everyone. The 2009 CTS-V isn't even a drop in the bucket for GM from a financial standpoint. Even if the price does go up after the first year (which is likely), people who have preordered the car or buy the first year won't be affected.

Kadonny
10-10-08, 05:15 PM
I've never been shocked by what some dealers do to make an extra buck. Just like Wall Street. A friend of mine went to price an 09 CTS this week and they tried to mark it up on him. He walked and he said he only been 5 minutes down the road before they called and said they would take the 2k off they marked up to make the sell. That's why they do it to see if you'll pay.



There is a big difference between some shady dealers (salesmen) and the manufacturer.

V-Love
10-10-08, 06:04 PM
I am thinking about dropping 1k for some GM stock. Its super low. This is the time for some deals.

dqw1
10-10-08, 06:18 PM
I was only pointing out shady dealers.

SoCal-VEE
10-10-08, 06:45 PM
Anderson Cooper 360 - Ten Most Wanted: Culprits of the Collapse


I was only pointing out shady dealers.

GNSCOTT
10-10-08, 11:09 PM
Guys, guys......seriously.

GM has already all but told every magazine and Web Site what the price of the car will be. Changing market conditions, stock values and the credit market require solutions much more grand than raising the price of one limited production car by a few thousand bucks. If anything, it's the "meat and potatoes" cars like the Aveo, Malibu, G6 and V6 CTS that sell in huge volumes that will help foot the bill for rising material costs- raising invoice on those $500-$750 x 500,000 units will generate tons more cash for GM than than an extra $5,000 to the CTS-V on a paltry 6,000 units ($375mil versus $30mil for those keeping count at home). I'm sure they'll also be leveraging some incremental price increases in China (where they're selling more cars than in the US).

Relax, everyone. The 2009 CTS-V isn't even a drop in the bucket for GM from a financial standpoint. Even if the price does go up after the first year (which is likely), people who have preordered the car or buy the first year won't be affected.

GM has some decisions to make. They may have no choice but to cut halo cars that lose money right now to stop the bleeding. ZR1 production has stopped with no explanation or sign of another start up, I personally think it is a quality issue, but i would not be shocked if it was cancelled either.

Knuguy
10-11-08, 01:02 AM
One thing to note, while stocks have fallen so have raw materials. Oil, copper, aluminum and most other metals are way down in cost and the US dollar is getting stronger. So while stocks look grim, the cost of raw materials for the cars will be less. Not that we'll see that in the sticker, but it is what it is.

V-Love
10-11-08, 01:51 AM
One thing to note, while stocks have fallen so have raw materials. Oil, copper, aluminum and most other metals are way down in cost and the US dollar is getting stronger. So while stocks look grim, the cost of raw materials for the cars will be less. Not that we'll see that in the sticker, but it is what it is.
Agreed. Buy GOLD now! You should see my 80's chain. I tripled my money!!! If I had an extra 10k - 100k, I would get an account with one of the on line trade companies (scott trade, ect.....anyone have good relations with one of them?) and trust myself. I am just a technician, BUT, I know a good deal when I see it.
Start a poll...one question..... do you think GM is going BANKRUPT?......if not, my 1K is a good investment.
PS- I'm drunk.
PPS- If anybody from this forum ever runs for a gov't seat, you got my vote(except if you like 22's or your a lucky daughter).
Blah, Blah, Blah. I love you all!
Thank you, officer!

vperl
10-11-08, 03:18 AM
Originally Posted by Cadillac Tony
Guys, guys......seriously.

GM has already all but told every magazine and Web Site what the price of the car will be. Changing market conditions, stock values and the credit market require solutions much more grand than raising the price of one limited production car by a few thousand bucks. If anything, it's the "meat and potatoes" cars like the Aveo, Malibu, G6 and V6 CTS that sell in huge volumes that will help foot the bill for rising material costs- raising invoice on those $500-$750 x 500,000 units will generate tons more cash for GM than than an extra $5,000 to the CTS-V on a paltry 6,000 units ($375mil versus $30mil for those keeping count at home). I'm sure they'll also be leveraging some incremental price increases in China (where they're selling more cars than in the US).

Relax, everyone. The 2009 CTS-V isn't even a drop in the bucket for GM from a financial standpoint. Even if the price does go up after the first year (which is likely), people



---------------------------------------------------------------:welcome:-Hate to agree with that guy from the Juice state, but he has a very good point...

Seems weree were told at one time GM was going to produce 8K vehicles if there was a demand....

If indeed GM is going into production in 30 days... it seems odd still no MSRP... but who cares?

Buying any vehicle is based upon the car and price.... looks good now, maybe not so good later. :helpless:

NormV
10-11-08, 10:21 AM
After late Friday's news they might be changing the name before they put a price on it, "CTS-SRT"! Just rumors right now. :)


Norm

lawfive
10-11-08, 06:11 PM
The Chevy Challenger? The Dodge Camaro?

Holy shit, the universe is going to explode.

RightTurn
10-11-08, 07:02 PM
Agreed. Buy GOLD now! You should see my 80's chain. I tripled my money!!! If I had an extra 10k - 100k, I would get an account with one of the on line trade companies (scott trade, ect.....anyone have good relations with one of them?) and trust myself. I am just a technician, BUT, I know a good deal when I see it.
Start a poll...one question..... do you think GM is going BANKRUPT?......if not, my 1K is a good investment.
PS- I'm drunk.
PPS- If anybody from this forum ever runs for a gov't seat, you got my vote(except if you like 22's or your a lucky daughter).
Blah, Blah, Blah. I love you all!
Thank you, officer!

I'm going to have to report you for PUI. Pull it over, bub. :alchi:

LITTLEELVISDAN
10-13-08, 12:12 PM
Since my thread was closed in the STS-V forum by someone, i'll post here where it is a valid question. Aparently the owners of this forum don't want us talking about current PUBLIC / CONFIRMED news.

With GM seeking to partner up with Chrysler or Ford what is the future for the V2??? Maybe that is why pricing is not out yet. Thoughts.


Hopefully this doesn't get sensored... If I get banned mods... please refund my membership when it happens. If we can't openly talk about the company who makes all of our cars and their future and future products, what the use?

RightTurn
10-13-08, 12:51 PM
I don't know why that thread was locked; usually it would have just been moved to "The Lounge" since it wasn't specifically about the STS-V. Anyhow, I believe the V2 will hit the lots by the end of November.

urbanski
10-13-08, 01:00 PM
there's already about 6 gm merge threads in the lounge

LITTLEELVISDAN
10-13-08, 01:31 PM
there's already about 6 gm merge threads in the lounge
My bad. I looked for a specific one and didn't come up with any.

Cadillac Tony
10-13-08, 03:34 PM
The R&D is done. The testing and tuning is done. Parts suppliers are involved, have been paid, and parts are sitting at LGR waiting for production to begin. At this point, choosing to NOT build the car would make all of those dollars a complete loss. The only situation I can imagine that would result in the CTS-V being canceled is if the LGR plant were closed in the next 17 days, but with the V6 CTS still selling extremely well that's not going to happen.

This is much ado about nothing. Here's an alternative theory: Maybe GM is keeping the price a secret to prevent MB and BMW from making adjustments to the packages and pricing of their AMGs and Ms until the V is already on the market?

As another poster on here would say- "Food for thought......"

urbanski
10-13-08, 05:17 PM
This is much ado about nothing. Here's an alternative theory: Maybe GM is keeping the price a secret to prevent MB and BMW from making adjustments to the packages and pricing of their AMGs and Ms until the V is already on the market?

As another poster on here would say- "Food for thought......"

no. C nailed it. they're doing it to piss folks here off

Cadillac Tony
10-13-08, 05:21 PM
All right, all right- you got me. :lol: