Economics Update: chapter 4 Worksheet
Case Study: Fueling Automobile Demand
Article title At GM, Lutz’s Bets Starting to Pay Off
Source BusinessWeek, March 2, 2007
Activate Prior Knowledge
Complete the table with the terms below.
Paper manufacture is, generally speaking, a low-margin business. The company has shifted away from low-margin products.
to sell (something) to customers for their own use
Not arguing over a price
Buyers who buy imported goods
To fade away
technique which some consumers use to get a better deal from automobile dealers
type of incentive
types of automobile customers
people who purchase Kias
amounts of profit gained from sales
to look at Toyota Camrys as well as Saturn Auras
Guided Reading Questions
Read these questions before you read the article and take notes as you read. 1.
Which cars accounted in the rise in General Motors sales? Chevrolet Cars
How did the automobile sales of U.S. manufacturers compare with those of foreign companies? The U.S get their cars from other countries
Answer these questions on a separate piece of paper.
1. Why is it significant that shoppers who were looking at Hondas, Nissans, Toyotas, and Volkswagens were considering Saturns as well? Saturn reports double and tripledigit increases in reverse crossshopping figures with the new vehicles it has launched.
2. Why is GM trying to switch focus from fleet sales to retail sales?
They cut fleet sales 15,000 vehicles in Feburary as the company tries to focus on selling higherpriced cars to retail customers. 3. What is GM’s strategy for increasing demand for the Saturn? They launched a brand called “ A Different Kind of Car Company.”
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