ild,
The stocks have me worried. Jay Chen has stated many times that it is never "different this time".
And, the automotive beat(ing) goes on....
GM slashes price for 2006 models
Ford extends discount pricing program to Sept. 6
By Padraic Cassidy, MarketWatch
Last Update: 4:17 PM ET Aug. 1, 2005
NEW YORK (MarketWatch) -- General Motors Corp. on Monday slashed prices and added other buyer incentives for its 2006 model-year fleet, hoping to ride the momentum of a discount program that boosted the automaker's market share in June and July.
North American rival Ford Motor Co. announced later in the day it would extend its own discount pricing program through Sept. 6.
GM (GM: news, chart, profile) , scheduled to release July light-vehicle sales data Tuesday, will cut the price on 30 of its 76 models for 2006 and add warranty changes and other extras as standard on some vehicles.
"Given the intensely competitive automotive market, incentives will continue to play a role in GM's marketing strategy," said Mark LaNeve, GM's executive in charge of North America sales and marketing.
As examples, GM said, the price of a 2006 Chevrolet Silverado Crew pickup truck will drop $3,055 to $27,990; the Saturn Ion 2 sedan will fall $2,455 to $12,490; and the Chevrolet Malibu will be cut $1,835 to $17,990. The sticker price on a Saab 9-3 2.0T Sport Sedan falls $950 to $26,620.
All Hummer and Buick models in 2006 include a four-year, 50,000-mile warranty, and the automaker has lengthened the list of models that will carry its navigation and handling extras, OnStar and StabiliTrak.
In June, GM turned in a 68% surge in truck sales to an all-time industry record of 383,601 after the world's biggest automaker introduced its trend-setting "You Pay What We Pay" promotion.
GM extended the deal through Monday, but with domestic rivals Ford Motor Co. (F: news, chart, profile) and DaimlerChrysler (DCX: news, chart, profile) offering employee-discount plans of their own, any surge in unit sales for the month will likely be spread across the group.
The program that Ford has now extended into September applies to Ford, Lincoln and Mercury cars, trucks and sport-utility vehicles and "has been a tremendous success in July," said Steve Lyons, Ford's vice president for North America marketing and sales.
The promotion also applies to 2006 models of trucks; vans; and its Escape, Expedition, Mariner and Navigator SUVs.
Ford also cut the average price of its Explorer SUV for 2006. The base price of its Focus and Freestar vehicles and its Ranger and F-150 pickups were also lowered.
Also Monday, Sirius Satellite Radio (SIRI: news, chart, profile) said that Ford and Lincoln Mercury would offer its radio service as a factory-installed option on the F-150, the Lincoln Mark LT, the Ford Explorer and the Mercury Mountaineer. See full story.
Shares of Ford rose 11 cents Monday to $10.85.
Shares of GM, a component of the Dow Jones Industrial Average, rose 4 cents to $36.86.
GM launches for 2006 include the $19,995 Pontiac Solstice, the $15,990 Chevrolet HHR and the $29,500 Hummer H3, vehicles GM said would "break through the crowded marketplace and attract new customers."
Ward Transportation Research analyst Michael Ward predicted Monday that U.S. light vehicle sales in July would reach an annualized rate of 19.7 million units, compared with 17.2 million in July of 2004.
marketwatch.com
GT
TH |
