The two primary challenges that any vehicle company faces in a given year involves either selling more product and gaining more market share or handling miss-matches in the market. While some trends are reasonably predictable no forecast is perfect. As a result OEMs have developed tools to combat slow moving product sitting in inventory.
In this month’s Observations Dennis talks about “safety valves” which are tools that OEMs use to help sell product that do not sell as well as expected. Topics of discussion include consumer oriented incentives, dealer focused incentives and the dangers of pushing for higher sales numbers at the expense of the consumer.