That is the problem. If you drop the price too low, you destroy the resale value of used units as well and get even more people pissed off at you. Is Mercedes-Benz suddenly selling cars for $10K? No, inventory is just going to sit around a lot longer until it is sold. Everything has an intrinsic value and I think you have to have a reasonable floor price, certainly above your cost of production, otherwise, what is the point? Giving things away just to get rid of them, well that's what a receivor does in a bankruptcy...
Yes. And, if one of the Big Three goes under, the receivers will likely liquidate asap. When they're shoving brand new 2008 Impalas out the door for $10,000, that kills the market (not only for 2009's) but also for every other manufacturer. They either match the prices, or they sell nothing.
Extremely interesting days ahead in the very near future. I have no idea where this is going....but it sure ain't business as usual.
It was interesting the other day to find out, when I took our new purchase 2008in for a bit of minor warrenty work, that it was actually built in October of 2007. It took them until January of 2009 to sell it. It boggles the mind to thiink how many more are out there sitting.
