48 ordspråk av Tom Libby

Tom Libby

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They are trying to keep inventory turning by lowering the price through incentives. But obviously the vehicle is under pressure already.

The incentive data include 13 different types of incentives and includes lease incentives. It is very comprehensive.

It keeps Honda and Toyota sort of looking at Nissan. The fact that Nissan is refreshing their product periodically keeps Honda and Toyota on their toes. It keeps that market very competitive. I think it's a positive for Nissan and a positive for the whole segment. The benefit is the consumer has a lot of great choices.

It's one of the, if not the most competitive segments. You have high-volume brands, and a lot of their entries in that segment are flagship models.

So far, the perceived gas price increases have not had any discernible impact on new-vehicle buying patterns, at least with regard to the size of the engine.

For there to be a major shift in the industry, prices have to go well above $3 a gallon and remain there consistently. If you do the math it's still going to take many, many years to recoup your extra price through gas savings.

We believe that prices have to actually get to $4 per gallon and remain there for one year for there to be a substantial shift.

The price premium is eventually going to have to be adjusted. It looks like they're pushing against a threshold.

I think incentives are very much an integral part of the industry. It's a very sophisticated pricing tool. The Asians are clearly much more into the incentives game this year.

Right now the domestic brands do not have the reputation that would allow them to go without incentives. Chrysler tried it three years ago. Then two weeks later they got right back on the incentives because without them they couldn't market anything. The brand strength of Honda, the history of reliable, durable products, is great enough to pull in prospects without customer cash.

Toyota tends to have more products in each segment. Honda goes much slower -- for example, it's not in pickups at all. But they watch and when they execute a product, they do it almost flawlessly so they immediately have a leader in the segment.

Even with the lower net pricing, the transaction price is creeping up in the broad sense. There is movement (by buyers) from one segment to another. And the brands have added new models, and those new models are priced in the upper range of the brand.

The deal will fade, but the vehicle will be with you for years. Get something that you'll enjoy, that holds its value, because you'll have to live with it down the road.

They don't seem to be able to make money there.

The domestic manufacturers have capacity in excess of demand, so they have determined to lower price through incentives to keep them occupied.

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