In the wake of heavy incentives and deals, eyes all over the business are on GM as they enjoy a sharp surge in sales. While GM defends its level of incentives and says that they are not much higher than those of the industry at large. The business has been showing signs of life after a near collapse two years ago, but analysts warn that a price war could lead to legions of unsold vehicles.
Over production is one of the main attributes credited with leading to the automotive collapse, especially with regard to GM.
“The real question is Ford (F, Fortune 500) and how much longer they will allow GM to add share without responding with price cuts of their own,” said Jeremy Anwyl, chief executive of Edmunds.com.
Ford’s share for the first two months of 2011 was down 1.3% when compared to the same period in 2010, while GMs share rose. Incentive spending for that period in 2011 was noticeably higher on the part of GM – almost $1,100 per vehicle. GM says that incentives can not take the sole credit for the sales boost enjoyed by the company.
This is certainly good news for GM and for Freeman Grapevine! If you are interested in some of these amazing incentives and discounts, then you’ve gotta come and check em out!