Team-BHP - View Single Post - What do you think of the European strategy?

Mpower · 1st March 2006, 04:24

You're right, I dont see much interest here, but hey........product strategy is my favourite topic and I can talk about it all day.

Regarding the Malibu, I believe its for fleet sales only. A majority of the mid-size sedans from the big-3 end up in fleet sales (rental cars) and these are sold at v.low margins. So I guess GM will feed the old Malibu to the fleets till private sales of the new one cool off and then they switch over. Make a buck while you can. Not sure about Canada though.

Also note that the Grande Punto was never meant to be a replacement for the Punto because the Punto itself is new and came out less than 2 years ago. The Grande Punto came out of the GM alliance and I guess they decided to capitalise on the brand equity of the Punto.

Your point on the residuals is very valid. Things are crazy over here with GM residuals because GM keeps announcing price cuts and rebates and you never know what's the right price to pay.

1st March 2006, 04:24	#4 (permalink)
Mpower Team-BHP Support Join Date: Mar 2005 Location: Chicago/B'lore Posts: 4,165	You're right, I dont see much interest here, but hey........product strategy is my favourite topic and I can talk about it all day. Regarding the Malibu, I believe its for fleet sales only. A majority of the mid-size sedans from the big-3 end up in fleet sales (rental cars) and these are sold at v.low margins. So I guess GM will feed the old Malibu to the fleets till private sales of the new one cool off and then they switch over. Make a buck while you can. Not sure about Canada though. Also note that the Grande Punto was never meant to be a replacement for the Punto because the Punto itself is new and came out less than 2 years ago. The Grande Punto came out of the GM alliance and I guess they decided to capitalise on the brand equity of the Punto. Your point on the residuals is very valid. Things are crazy over here with GM residuals because GM keeps announcing price cuts and rebates and you never know what's the right price to pay. __________________ The difference between the men and the boys....................is the speed of their toys.