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Also tonight it's a battle for buyers auto makers going head to head slashing prices for a chance at a better spot on your online search results listen -- this Michelle Krebs senior analyst at Edmunds dot com joins me now to explain.
Thanks for coming on the show it's always great to have you here we saw the story -- -- signs slashing prices as much as.
4000 dollars in some cases.
All in an effort to get better representation on -- online web sites tell me what's going on.
Well the Japanese auto makers are in a better position now to do some pricing readjustment and that -- onset of a different company they're very bold and they're very aggressive and I -- -- gold and get gained 10% market share here in the US it runs generally between six and 9% so they're getting close.
I'm so I think they they want to make a big splash by slashing prices.
We'll make -- it you know it's beginning to look like something of a trend here we had -- son -- and cut GM cut some prices.
Are these company is trying to improve the value equation for consumers out there will we see more price cuts.
We may I don't think we're at a price any -- near price -- right now GM cut prices on its a Chevy Malibu by a few hundred dollars simply because that wasn't selling well.
Nissan's made this move there may be some -- most by other automakers but what's really been happening.
And the last couple of years just.
The pricing has been pretty strong for the auto makers there has not they have not been a lot of incentives.
Not huge amount of discounting generally.
-- shell game I mean because they have the incentives I mean they play with what price is a number of different ways.
What's going on there.
Well late that's always been the game I mean an -- -- fact what Nissan is doing as instead of doing.
Incentives they're going to use that money to cut the prices.
You know it's it it's -- always part of the game -- selling.
And you need a very important point the Nissan is trying to get at a better market share here in the US -- -- just in relay.
Having -- -- -- place here in the US market -- you see that.
Didn't the yet is actually the value -- the yet is actually helping -- do what it wants to do here.
Well it's they do build an awful lot of cars here in the US but.
But it is that -- weeping and is going to help the Japanese auto -- a little bit they can.
Do things like that I I was quite surprised by any sentinel that actually cutting prices I didn't think anybody would be -- -- but if someone's going to be able that's going to be Nissan.
But I think what you may see is a lot more advertising and marketing you may see more discounting at the dealership -- idea the other hand I think we will be seeing in the futures.
Putting a whole lot -- contents in a vehicle like a Toyota or Honda and then keeping the price the same or maybe a little -- You'd told our producer that the average -- right now somewhere around 2300 dollars.
And that there is potential for pricing to become more advantageous to consumers -- that -- Michelle.
Well I think it is exactly that the whole situation with the Japanese and again and when they start making moves when he -- makes -- vote.
And the other automakers can't stand by and do nothing.
Now if it's a strong selling vehicle anyway you're not Tennessee big discounting but it here we're gonna see that around the edges and we always see that going -- summer is.
There's a big sell down of the old bottles and then the new ones come on the market.
Perhaps where the deals are for the consumers by the way.
OK well good to know Michelle thanks for coming on tonight it's always great to have you on and we love Edmunds dot com thank you.
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