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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (15679)	12/31/2002 2:43:22 PM
From: High-Tech East	Read Replies (2) \| Respond to of 19219

<<I'd like Bob to comment on this, but the model seems to be sell the car for cheap and make money on the parts, accessories?>> I don't think so ... I think the model is to use 0% financing to avoid having to close factories with the present Master UAW contract making that impossibly expensive ... however, and I am not sure of this, but I believe the Master Contract expires during summer, 2003. That is when the auto factories will be quickly shut down and 0% financing eliminated - immediately followed by an industry-wide strike. Bob, is that even close to what you see? Ken

To: Lizzie Tudor who wrote (15679)	12/31/2002 3:42:33 PM
From: robert b furman	Respond to of 19219

HI Lizzie, The main emphasis is on new vehicle sales. With market share then service parts,body shop business,and good resale all comes with having a popular model. Volume drives the merry go round - but from GM's perspective,they've surrendered the midsize car to sub compact markets to Koreans. I talked with Bill Lovejoy at GM and he thought no one was making money on any car smaller than a Malibu. Recent GM emphasis is on full size trucks ,Full size SUV's and midsize SUV's and a very strong push on new product for Cadillac - a full size margin car. Discounting will be strong on Buicks,Pontiacs and Chevrolet cars. Unfortunately Chevrolet cars have been made into rental car vehicles, and Pontiac now has the excitement that gets the juices flowing in sporty cars. With the dollars strength it is futile to beat the Japanese Yen or S Korean currency.Domestic makers just have to many costs to compete with a 20-30% disadvantage. Even brilliant engineering and equal qulaity doesn't overcome the currency disadvantage. Gm has accepted the fact they must only compete where their core competencies exist and margins can be generated. That's my perwsonal spin on it at least. Bob That's why GM bought Daewoo - they will join the low labor cost manufacturing and add advanced manufacturing processes and rebadge them at the port ( with Chevrolet Bow Ties). They will take a page out of electronic contract manufacturers business model. As I see the globalization of car manufacturers - there are two players that have long term staying power:Toyota and GM.Daimler Chrysler,Honda most likely will prevail.Nissan,Peugeot,Fiat,and FORD !! are still quite questionable. JMHO Bob