Last fall, GM announced a reduction in GTO production and had to offer large rebates on this brand new model to sell off inventory
In December, GM had a 301 day supply of SSR's on hand.
Then the XLR gets a production cut from 23 to 12 a day. There's a 200 day supply of them out there. Cadillac hoped to sell 6,000 annually, but through 18 months, sold just 4,744.
February, GM decides to cut $1500-$2000 off the sticker mid-year on Trailblazers/Envoys/Rainiers and currently has 0% for 60 months to get them selling again. TrailBlazer sales fell 46% compared with January 2004. Envoy sales were off 52% and Rainier 27% according to Autodata reports.
Then for March, the factory that produces the LaCrosse & Grand Prix is shutting down for a week.
Then the earnings forecast for 2005 drops 80%. Stocks drop to 8 year low.
I think this goes back to cutting the Camaro and Firebird out of the lineup.
|