Following the earlier post about the Consumer Reports survey finding that fuel economy is now car buyers' number one consideration in America (something you may not expect given the number of SUVs and Pick-Ups you see tearing along highways above the speed limit), it seems that General Motors and Ford are going to do all they can to maintain their new cars' pricing even if it means sacrificing sales.
It's
a gamble they embrace as they look first to boost their stock
price. If all goes well, the companies will continue to strengthen their
pricing and maintain profits to offset the economic crisis in Europe. If
it turns south, however, the companies could lose more market share and
face temptation to jack up rebates and offer discounted financing to
move the metal.
GM and Ford's resolve to stick to their plans will be tested through the summer. As
CEO Dan Akerson told analysts immediately after GM reported a
$1-billion. first-quarter profit, "It's difficult to remain as
disciplined as we have been when you look at some of the activity of our
competitors."
It's not just Volkswagen and the Japanese nipping at their market share:
Through
April, Chrysler's market share rose from 9.6% a year earlier to 11.6%.
In 2009, when its share was 8.9%, Chrysler CEO Sergio Marchionne set a
U.S. market-share goal of about 13% in 2014.
Chief Marketing Officer Olivier François said the new Dodge Chief Marketing Officer Olivier François said the new Dodge Dart,
Chrysler's first compact car since the Neon, and continued strength from
the Chrysler 200 and 300, Dodge Durango and Jeep Grand Cherokee should
sustain the momentum.
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