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Cash on the Hood
777Date: Thursday, 28 Oct 2010, 19.46 | Message # 1
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The car sales world has changed significantly in the last few years. Whereas manufacturers once resorted to all kinds of tricks and gimmicks to inflate numbers from one area to the next, the public, the motoring press and the government have all started paying quite a bit more attention to how car companies move their products. While that has a lot to do with the fact that the American taxpayer was gracious enough to bail out both Chrysler and General Motors, it also means that both companies are now focusing on improving their products to boost sales instead of relying on incentives and fleet numbers.

Or at least that was the trend for most of 2010. Occasionally, domestic automakers have been forced to slip back into their old ways, especially when it comes to offering incentives on overstocked models. Incentives are viewed as particularly poisonous for carmakers, largely because the move as seen as proof that the company overestimated demand for a particular car or truck. Word has officially surfaced that General Motors has begun offering incentives on the Chevrolet Corvette ZR1, the fastest and most powerful vehicle in the company’s stable. Critics are having a field day dissecting the big Bow Tie for the move.

Why the ruckus? Analysts typically expect to see carmakers push incentives for high-volume, inexpensive models, but it's much rarer to see cash incentives on exotic vehicles worth more than $100,000. GM has been building only 500 of the supercharged V8 ZR1s per year, and there’s some indication that 2009 model year vehicles are still on dealer lots. In those cases, GM is offering up to $5,000 in incentives just to get the cars out of the way.

The Corvette ZR1 is priced at $106,880, though even at that price it offers a level of performance that’s on par with most supercars. Unfortunately, buyers in that price bracket are accustomed to a certain level of interior civility that the car simply doesn’t afford, and the lackluster sales may be an honest indictment of the company’s cabin quality.


 
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