Monday, December 3, 2007

MALIBU PROFITS

Chevrolet's previous-generation Malibu sold for $17,215 in 2007. That was a base four-cylinder model before incentives. Chevrolet's brand-new Malibu bases $5 below $20K. Bob Lutz says the new model will generate $5,000 more profit per car than the old Malibu.

What does that say about the old model? I
f a new car, priced $2,000 and a bit more than the old car, can generate $5,000 more in profit, what was the old car generating?

Old Malibu? Ugly, slow, decontented, ugly, and heavily incentivized. And ugly. Malibu's mum couldn't love that face.


New Malibu? Handsome, bold, quicker, pricier, heavily marketed, even award winning. And, yes... handsome. Sounds like the new Chevy Malibu might just earn General Motors an extra $5,000 for every car sold. Shocker.

Links:
Cars.com page for '07 Malibu
Chevrolet.com/Malibu
GCBC's Malibu search

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