Buy 1, get 1 free is worldwide trend among car dealers

Can the US get the same deal with car makers?

I totally fail to understand the economics on this for the dealers beyond: UH OH.

When all else fails … hope for divine intervention:

With sport-utility vehicles at the altar and auto workers in the pews, one of Detroit’s largest churches on Sunday offered up prayers for Congress to bail out the struggling auto industry.

“We have never seen as midnight an hour as we face this week,” the Rev. Charles Ellis told several thousand congregants at a rousing service at Detroit’s Greater Grace Temple. “This week, lives are hanging above an abyss of uncertainty as both houses of Congress decide whether to extend a helping hand.”

Local car dealerships donated three hybrid SUVs to be displayed during the service, one from each of the Big Three. A Ford Escape, Chevy Tahoe from GM and a Chrysler Aspen were parked just in front of the choir and behind the pulpit.

2 thoughts on “Buy 1, get 1 free is worldwide trend among car dealers

  1. The extent to which the state of Michigan is following these hearings and deliberations cannot be overstated.

    It draws far more attention than any other topic of discussion and some variant of it can be overheard pretty much anywhere you go.

    The closest second-place conversation topic is, of course, how much the Lions suck.

    I personally cannot stand the management of any of the big three and completely agree they’ve dug their own graves (as did the management of most of the financials and banks).

    Sadly, those graves will be filled in with hundreds of thousands (if not millions) of midwestern jobs, and we therefore must, with gritted teeth, help the industry out.

  2. Here’s why “buy-one-get-one-free” works: the dealers are stuck with inventory that is tying up their money. They need cash to pay the light (and real-estate tax) bills. Moving the inventory out — even below cost — is a reasonable move. It does, however, bring to mind the R.D. Laing comment: “Insanity is a sane reaction to an insane world.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s