Now somebody tell again why Chrysler can not do this!!



Nissan attempting to reduce markups on GT-R orders
Filed under: Sports/GTs, Nissan


Pre-orders for the 2009 Nissan GT-R have already begun, with 691 certified dealers across the US ready to service the new offering. The expected sales volume is in the range of 2,500 vehicles for the first year and 1,500 anually after that. Do the math and you'll see the equation adds up to limited consumer availability. Mix that with high demand and you know that markups follow. Eager enthusiasts are up in arms over the possibility that their greatest desire might he priced out of reach as a result. Even Nissan expects to see its dealers make an attempt to cash in.

Hoping to alleviate fears of $60,000 fees tacked onto the $70,000 GT-R, Nissan North America spokesman Darryll Harrison spoke with Inside Line about the automaker's actions aimed at curtailing dealer markup. After all, Nissan worked hard to create a high performance machine that sits in a more affordable price range and it wants it to reach its originally intended consumers. Harrison revealed that not only is Nissan requiring all GT-R sales to go through dealership management staff, but paperwork must also be filed with Nissan North America's regional sales offices. The term "counsel" was used to describe the interaction between the dealership and regional sales office. What this "counseling" entails is unknown, but sounds like it involves discouraging dealerships from engaging in egregious rip-off artistry. How successful this approach will be remains to be seen.

 

Obviously, I don't want to be gouged. But, I am still a firm believer in free market dynamics and supply and demand.

I think that Chrysler is allowing dealers to run their own groove, so that if they can make some cash on someone willing to pay, go for it. Think about it...it's been lean times for Chrysler dealers over the years, anyone still around, should be allowed to reap as much profit as the market will allow.

IMHO, the only way Chrysler should attempt to keep the price toward a targeted lower area for the intended consumer, is to PRODUCE at MAX CAPACITY. Multiple plants. If you can realize a fair margin for each unit, then logic only dictates you should rip out any barriers that could impede any consumer willing to pay MSRP from getting his, and CHRYSLER getting much needed profit on each unit. (then funnel that money back into R&D to not only improve product making it more attractive still, but improve process of production to increase margin and reduce creation time, read no more status quo).

 

Skippy,

I agree

You can make your money taking a little money from lots of people and make them all thrilled while this volume drives additional efficiencies and growth of the brand or

Take lots of money from a few people which makes it difficult to support/develop your product.

Which will the challenger be?

I'll get off the soapbox.

Eric

 

What I wonder is if Nissan and Dodge could do a "direct buy" program where you can go around the stealerships and buy the car directly from Dodge at MSRP (plus delivery fees or something). I imagine this would be like BMW's program where you buy the car at the factory in Germany. Stealers would wail and scream but is there any reason why this couldn't work?

 

Well, from what I hear our laws play a part as to why the manufacturer really can't step in and stop the dealers from selling above MSRP. And from what I can tell, people are still saying that this is a nostalgic thing, being that the older crowd will be the only crowd that will really come after the Challenger, people who want to relive the old days. So far that's the only audience that I can see targeted for this vehicle, though I would like one. GT-R seems to be targeted at a larger audience.

I don't believe that Chrysler really thinks that they are going to sell a lot of these and I don't think that they believe that they are going to come close to the sales of the Mustang. Many other people here also believe the same thing. That being said, I don't think Chrysler will try to stop the stealers from making all the money that they can and I don't think that this car is really going to be produced in mass unfortunately. I would really hope that I'm wrong, but we'll see with time.

Meant to add also, as for direct buy from the manufacturer, I believe we have laws against that also. Not totally sure on that one, but I believe I have heard that somewhere or I believe that there wouldn't be any need for dealerships. Just order your car online and it's delivered to a central location near you.