then holden wouldn't produce enough revenue to stay viable. If GM could sell the chevy SS for more they would but the american market wont pay for it. It's a side business for holden to make a few extra bucks, the core commodore business is australia.
we have no idea what the financial situation is between Chevrolet and Holden over the pricing of the SS. Holden could be being subisidised by GM/Chev to produce the SS for them for all we know, it is after all a 'halo' car for Chev, its not there for a direct revenue impact.
In the Australian market buyers are happy to pay the price we have here, the premium SS/Calais/HSV lines are the models that sell to private buyers, its why Holden have contcentrated on that market harde this time around.
Frankly if a few thousand Chev SS's get sold at 40K US and that helps the local car industry then none of us should care, we should be happy about it. I am, and i'm lining up for the VF HSV when it comes out. I hope the deal means we get something after the VF as well because i love commodores.
the 40K Chev SS beat up in the papers is just sensationalism for the sake of a story.
I have a feeling they'll ditch the Redline tag and make the SS-V basically the Redline edition, it may be they needed it for more seperation between that and the normal SS.
Which would mean that the SS-V would gain FE3 over the SS FE2 and also the bigger 4 piston Brembo brakes over the shoddy 2 piston set-up.
It is unlikely it is the case that Chev is subsidizing the ss to achieve a lower price point. If this is the case then Holden has to be transparent about it because they only survive with substantial tax payer support. The far more likely thing is, as you say, that US will not tolerate higher prices and that is why a lower price point is offered with higher features. The business case works and is sustainable at that point. I believe Holden has to realize that all of this price discrepancy is coming to a head and consumer awareness / dissatisfaction is growing with the dollar above parity. Very few people offer the brand loyalty of years ago. They will buy a product because of its value. With Aussie dollar above parity and US market as a live comparison, that dollar value is being questioned more and more. Even from a economic perspective, 10k more disposable income in consumer pockets means 10k more spent elsewhere supporting other Aussie businesses and not subsidizing US problems.
They would be successful if they make the same US business case work here and they may fail if they don't.
Alex
GM doesn't have a history of always being very bright...
Last edited by Troutman; 03-03-2013 at 08:44 AM.
This attitude is hardly anything new:
-Cadbury thought so when they changed their milk chocolate formula a few years ago to include Palm Oil. (changed back after backlash)
- Probably the most famous of all time was when Coke decided to change their formula. After backlash they released "Coke Classic" which was the original formula, which then just became Coke again after a while.
In a day of inflated Aus prices from most manufacturers and great volumes being sold, surely that is just the opportunity to introduce the US pricing model here. I bet at that price point the commodore would be a great proposition against the flood of other (relatively expensive) cars.
Alex
The problem is, is all this talk about pricing is pure media speculation and not factual information. Chevy has not released official pricing yet so i wouldn't be getting overly excited about anything yet!
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