View Single Post
Old 11-06-2008, 08:11 PM   #2 (permalink)
Matt Herring
Master EcoModder
 
Matt Herring's Avatar
 
Join Date: Jun 2008
Location: North Andover, MA
Posts: 857

Bone's 2010 Prius - '10 Toyota Prius Black
90 day: 56.78 mpg (US)
Thanks: 5
Thanked 23 Times in 19 Posts
RH77-

I usually agree with most of your posts...but have to disagree on this one.

I love the idea of getting to buy cheap cars but the only problem is the Big 3's operating budget includes the sale of their cars at near-current pricing. To liquidate their stock just to build cash revenue leaves them drastically short on income (which would ultimately trickle down to layoffs...something the government will not let happen on a large scale). While they might sell alot of cars quickly they would probably be making less money in the long run because they have to sell 3 cars to make what they used to on one car.

When the Big Three builds a single car and settles on a standard price for that car they also build that income/revenue into their operating budget. Selling cars at manufacturer cost does little to nothing to settle the increasing debt and losses they have incurred. Unless you're talking about being able to liquidate their entire stock for upwards of billions on dollars it just doesn't benefit them. And, you're assuming that Americans currently have money to buy a car...even at a drastically discounted rate.
  Reply With Quote