Monday, November 14, 2005

Red Tags will lead to bad times ahead

GM's at it again, and how long can the others keep from doing it. October's sales figures were way down for the big 3 and with GM's other problems, they've decided to slash prices not only on left over 2005 models but 2006 as well.

This may not seem Ford related on it's face, but just like the Employee Discount program of the summer, Ford will follow suit as will Chrysler. It's bad enough that Ford has been offering cash back and incentive financing on the Fusion, a move usually not needed with a car that has recieved such great press, but they will feel the need to respond to GM's latest action.

This may sound great for consumers, but in the long run it's bad news for an industry on the edge. I'd love to see Ford and Chrysler stand firm and not follow GM's lead like lemmings off the cliff, but they'll jump.

2 comments:

Dave T said...

actually they're not planning discounts saying the Fusion and Explorer are selling well without discounts.
http://www.mph-online.com/web/news/00178

Big Ford Fan said...

Dave, I'm sure you've seen the commercials by now for Keep It Simple.

I knew as soon as GM anounced the other two would jump also.

It's the only way they know how to respond anymore.