I recently read with great dismay that domestic car manufacturers are considering raising new car prices in response to the 9 percent price increase Japanese car manufacturers are anticipating.
This inappropriate response by the Big Three is a sign of their need to wake up to modern-day competitive realities. Substantial price differentials for similar quality products will create an increase in marketshare for the product of greater ”value,” especially if the competitor is undergoing a public relations crisis.
There have been precious few times in the past that Detroit has had these three advan-tages-perception of a quality product, price advantage and a favorable public relations cli-mate. I hope they use it to their benefit, rather than as a chance to squeeze out short-term profits at the cost of marketshare.
