Reaper
Tells it like it is.
- Joined
- Aug 15, 2004
- Messages
- 6,493
- Reaction score
- 11,502
- Points
- 113
- Location
- SE Suburbs, Melbourne
- Members Ride
- RG Z71 Colorado, 120 Prado , VDJ200, Vantage
There are lots of reasons for the sales slide. Notwithstanding the high cost of fuel which will have a small impact, the commodore is coming to the end of it's life which naturally slows sales (happens with every car). Also, we need to remember we are coming off a very high peak over the last few years.
Holden, Ford and Toyota are bringing out all new models over the next 18 months (ish) which will re-invigorate demand.
Furthermore fuel prices will have a lower impact longer term. 100 years of history says our current extraordinary oil prices are not sustainable long term. If I knew when the cost of oil will drop, I wouldn't tell you (and become very rich in the process . Even staying at this level or higher, over time, people get used to the new level and it becomes far less of a talking point. Just as an illustration, 4 years ago, the RRP of a slab (non discounted) of VB was $28.99. CUB resisted as long as they could going over the psycological (sp?) $30 barrier. To begin with CUB bought out the 30 can "value blocks" to get people over that price barrier. Now, in only a couple of years we are up around $36.99 for a 24 can slab. The next test will be the $40 price point.
Reaper
Holden, Ford and Toyota are bringing out all new models over the next 18 months (ish) which will re-invigorate demand.
Furthermore fuel prices will have a lower impact longer term. 100 years of history says our current extraordinary oil prices are not sustainable long term. If I knew when the cost of oil will drop, I wouldn't tell you (and become very rich in the process . Even staying at this level or higher, over time, people get used to the new level and it becomes far less of a talking point. Just as an illustration, 4 years ago, the RRP of a slab (non discounted) of VB was $28.99. CUB resisted as long as they could going over the psycological (sp?) $30 barrier. To begin with CUB bought out the 30 can "value blocks" to get people over that price barrier. Now, in only a couple of years we are up around $36.99 for a 24 can slab. The next test will be the $40 price point.
Reaper