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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (80636)6/25/2008 5:03:47 PM
From: Bonefish  Read Replies (1) | Respond to of 116555
 
The unions/pensions priced them out of the market long ago.



To: elmatador who wrote (80636)6/25/2008 7:16:25 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
Yes, exactly
GM has a bad choice
Raise prices and sell fewer cars (losing money)
Lower prices and sell more cars (losing money)

They tried this bluff before and it failed.
The thing is, GM would lose money even WITH those price hikes.
Raising prices will pressure dealers and inventory will stack up.

This is very nasty actually.
Mish