BREAKING: GM disbands High Performance Vehicle Operations

[Homeslice]

Originally Posted by OneSickPsycho

Yeah, but like most of the HO car lines, they don't pay for themselves... Therefore, it's a great move.



Exactly. Keep the revenue generating lines, dump the fluff. Sounds like a good decision to me.

Don't pay for themselves in terms of margin? Maybe. But just because a car doesn't provide much or any margin to the company doesn't mean it's valuable. GM needs vehicles that attract younger buyers into its brand.

[smileyman]

I believe kinda the opposite. Yes the HO cars are produced at a smaller quantity and with probably a smaller profit margin for the manufacturer, HOWEVER, to the dealers they generate floor traffic and their sales bring margins closer to the markups since they are a passionate, special interest, buy. I mean you can really talk the sales manager down on the F150 or Impala, or Taurus. But no way are you going to cut the same kinda bargain on the one per dealer Camaro SS or Cobra SVT Mustang...Those things bring a premium.

[101lifts2]

Originally Posted by Homeslice

Don't pay for themselves in terms of margin? Maybe. But just because a car doesn't provide much or any margin to the company doesn't mean it's valuable. GM needs vehicles that attract younger buyers into its brand.

Specialty models rarely make money for the simple fact the volume is too low. But...the point of an OEM is to attact buyers of all types so they don't jump ship to another OEM...nearly all OEMs understand this. But Homeslice you and others just do not realize the crisis GM is going through. I deal with GM people in MI a few times a week and when you hear GM turned OFF all voicemail, laid off ALL contract workers, denying payments to suppliers you know shit is bad.

I can see GM doing this...axing Saturn/Medium Duty/Saab/Hummer and maybe GMC, only if they file Chapter 11.