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Old 10-13-2012, 09:31 AM   #57
unkillsam
 
Drives: 2012 Camaro LT
Join Date: Jan 2007
Location: Springfield, PA
Posts: 104
Quote:
Originally Posted by SSCAMAROGUY View Post
Folks,

sales and production numbers tell only a very small part of the story when it comes to the sucess of a vehicle. Lets remember, a car has to be and remain profitable for it to remain in production. While the Camaro may have a slight edge over the Mustang in sheer numbers, there are lots of other factors to consider.

First you must consider the "halo" or newness factor. The Camaro still is reeping the benefits of being the new face on the block, but like all new faces, that attraction has already begun to fade.

Second, GM must still sell alot of cars to recoup its investment in R&D, production tooling, marketing and promotion etc. etc. where as by comparison, the Mustangs have long since paid off the big outlays.

Third, sales are already softening and dealers are not getting as much for the 2012-2013 models as the did for the first two model years, thus the profit margins are slipping even further. Watch for sales incentives as evidence of this decline.

Fourth, if you look at sheer production numbers, the new Camaro is already selling less units then in the year the F body Camaro/Firebirds were canned. That's not a good sign, especially when you consider that GM already has one "image car" in the stable which is a loss leader, the Corvette.

The good news, if there is a silver lining, is that with all the pressures on the small muscle car segment of the industry, it may just be worth holding on to these cars while we all keep our fingers crossed that they will have a good long run.

Just some food for thought.
Camaro is not selling less then in the year it was canned. First off, the Camaro was canned basically in 1998 when they decided that a weak refresh was all the 4th gen deserved, leaving it with the same looks for 8 years. Secondly, due to low production (ramping up for 35th aniv.) Camaro sold less then 30,000 in 2001 and just a hair over 40,000 in 2002. We are nowhere near those levels. Also, 4th Gen Camaro plant was dedicated. 5th Gen Camaro is sharing with other model lines.

Second, Corvette is not a loss leader, it is a halo car. The Spark is Chevrolet's loss leader. Now whether GM turns a profit with Corvette is up for debate but profitablility has nothing to do with a loss-leader.

If Corvette was a loss leader it would be $20,000 and selling a quarter million a year.
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