Monday, June 23, 2008

GM to RAISE prices on 2009 model cars...

As crazy as that sounds that was the announcement out of GM today.

General Motors Corp. told U.S. dealers Monday it plans to raise prices on 2009 models by an average of 3.5 percent despite a tough market that is forcing the automaker to cut production and discount its 2008 models.

This after they already have had to close four North American production plants and eliminating 8,350 jobs. I am not sure this is a way to raise market share but maybe the car maker is so desperate they don't know what else to do.

LaNeve said zero-percent deals are usually successful, but it's unclear if they'll have any effect in such a weak market. U.S. auto sales were down 8 percent through May due to the economy, low consumer confidence and high gas prices, and LaNeve said sales were soft in June.

Sales down and you RAISE prices.....I just don't get it.

CLICK HERE for the rest of the story from AOL Finance.



Post a Comment

Subscribe to Post Comments [Atom]

<< Home