Jul 1, 2009 9:42:45 PM
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Ron (Houston)
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Board: Other Sports Cars
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Re: June '09 numbers
^^^Chrysler is in bad shape because they no longer have any more of the burn / fire sale inventory. Now that dealers have to charge something other than "name your price" something a bit more rational, no one is interested.
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...the only thing stopping you in all likelihood, is you!
Re: June '09 numbers
Heist:
^^^Chrysler is in bad shape because they no longer have any more of the burn / fire sale inventory. Now that dealers have to charge something other than "name your price" something a bit more rational, no one is interested.
So you think the heavy rebates now backfire? You might be on to something.
Re: June '09 numbers
I believe the standard of living button has been reset. People in all income classes are trading in higher standards for financial security. Rather than buy things they don't need but nice to have, they are putting the money away for the next financial crisis. Discretionary spending is no longer in. You buy what you need and nothing more. Cars that normally would be recycled in couple of years are now held on to for a much longer period of time.
Sport cars are particularly vulnerable to this thinking. They are impractical and clearly unnecessary. Companies like Porsche will continu e to suffer for their customers (for the most part) are the people I described above. Ferrari will not suffer as much because their clientele have substantially more discreationary income and thus can continue to buy. That is not the case for Porsche, Corvette, GTR and other higher production sport car brands.
The new 450 may be a clunker styling wise it will nevertheless sell because it will be limited production, priced above $250,000 and attracting those because of their wealth have little concern for their financial security.
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Jul 4, 2009 10:35:52 PM
- SoCal Alan
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Re: June '09 numbers
Nick, do you think the market price of Ferrari's has had any financial impact on the Ferrari company or their dealers? I noticed that the market price has come down significantly. And this market price has a lot to do with the number of potential buyers and the amount of money that they had to spend. In other words, Ferrari IHMO is not immune.
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Jul 4, 2009 10:52:48 PM
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nberry
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Re: June '09 numbers
Alan, your point is well taken but Ferrari will be immune because of the limited production. They have more than enough wealth buyers coveting their products. For an example, even though the CA GT by all accounts has had a luke warm reception they claim to have a two year wait list. Part of the reason is Ferrari is cutting back on allocations despite the fact many dealerships have a list of "potential" buyers exceeding their allocations many of whom are first time Ferrari buyers.
The list for the 450 replacement is very long similar to the 430 list. Economy does not impact these buyers.
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Re: June '09 numbers
Eunice:
Heist:
^^^Chrysler is in bad shape because they no longer have any more of the burn / fire sale inventory. Now that dealers have to charge something other than "name your price" something a bit more rational, no one is interested.
So you think the heavy rebates now backfire? You might be on to something.
Exactly
(1) Chrysler's new owner Fiat is not throwing a bunch of incentives and buy-downs behind their cars like the old owners were. Who would $35,000 + for a Chrysler 300C for instance when a month ago you could have got it from a closeout dealer for $25,000.
(2) Heavy Rebates/Price Slashing is a good one time fix, but it's a double edged sword if you're not careful.
Suddenly you both flood the field with your product while simultaneously diminishing the value (both real and perceived) of your products, and Chrysler had been throwing heavy rebates since 2007(!) during the gas price hike and just after the 300C sales started hitting saturation.
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...the only thing stopping you in all likelihood, is you!
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