Saturday, May 12, 2012

Detroit's Welcome Sticker Shock

Making prices stick has been a constant challenge for automakers especially for the Detroit Three.  however recently automakers have seen higher prices and lower incentives which has led to record breaking profits for the auto companies even though Europe has been bleeding cash.

This WSJ story explains the turn around and if this is something that both consumers and auto makers should expect to continue.

In April, the average new light vehicle fetched $30,303, according to research firm TrueCar.com, excluding the average $2,446 incentive dealers put on the hood. A year ago, the average price was $1,219 lower and the average incentive was $146 higher.
[CARHERD]

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