It is probably a smart move, sales wise, in those two states.It is only $1000/car, much less than the $2500 Toyota currently rebates on the Tundra in CA for example. A lot of the fear folks have about buying a guzzler is "suppose gas goes to $4 next month". Well, that will be a big selling point for GM. Of course, if gas does go to $4,the rebate will be twice as much!
It is just a slightly tricky rebate-big deal.I bet GM will lobby GB to ease the Iranian mess-not that it will do anygood.GB is lame duck-why would he care-he isn't running for re-election (unless Jeb runs-unlikely).
GM has to keep body and soul together until its costs are closer to Toyota/Honda. They aren't better because of some"Japanese magic"-they are better because their plants are in non union/low wage states, and they don't have a huge backlog of retirees.It is easy to be better if you have another $1000 per car to play with.Thanks,Charlie
PS I have to admit that Honda does have some "Japanese magic", but it is actually "Honda" magic.Their emphasis on "efficient" and safe cars has been a boon to consumers; but it really hasn't been good for Honda.Look at Toyota-all those V-8'S,and over priced Lexus have made them many times larger than Honda.Honda has always made better motors than Toyota, but Toyota makes more money.Too bad really, I always preferred Honda to Toyota, but I have owned 3 times as many Toyotas.A Honda V-8 would have been a jewel! Toyota gives em what they want-Honda gives them what they need!! Which prescription wins?