If this car is to compete with the MX5 in performance how can GM offer it a price that is 2-3k less than the current MSRP on the Miata and the Solstice is two model years away? Wishful thinking or GM hype? $30,000 I can believe. On top of that dealers will want MSRP+ for the first 3-6 months. So much for my affordable fun commutte car.

Um, ok...

Why do you think 30k? What is that based on? A 30k solstice would have 240 HP, a convertible hardtop, automanual...

You're right about one thing:

"On top of that dealers will want MSRP+ for the first 3-6 months."

Well kinda right. People will PAY over MSRP for the first 3-6 months. It's called supply and demand and if you don't like it... Outside of a monopoly/cartel, things cost what they are worth. GM is obviously not a monopoly.

If this car is to compete with the MX5 in performance how can GM offer it a price that is 2-3k less than the current MSRP on the Miata and the Solstice is two model years away?

A couple of ways...(not saying GM is doing any of the below, just some ways they can sell it cheaper)

1) Make more of them. The Kappa platform can spread its development cost over a much greater number of cars than the Miata can.

2) Make it cheaper. Use lower quality materials here and there, hope people don't notice or don't care.

3) Be big. GM is a bigger company than Mazda, so perhaps they can get better deals from their suppliers.

4) Make less profit. I imagine the Miata has a sizable profit margin, since it pretty much owns the segment. GM can undercut them simply by being willing to make less profit on each car sold.

5) Lose money. Sell the Solstice at or near cost and write it off as an "image builder." Car companies have done this in the past to generate showroof traffic, hoping to make up the loss with more customers in the long run.

6) Build it local. GM doesn't have to pay to ship the cars across the Pacific. Most Japanese manufacturers have opened up factories in the states to take advantage of this, but IIRC all Miatas are still made in Japan.

Anyway, I imagine it's going to be a little each of all the above. I'm not 100% convinced that the Solstice will hit its price target, but I remain optimistic.

-Stephen M

The MSRP of a Miata probably is not a good indication of how much they cost to make: Given the discounts now on Miata's it seems like there is a hefty profit margin, as Stephen M suggests. Anyone paying MSRP for a Miata now is crazy. Mazada is offering heavy rebates now, and I understand that you can pick up new 2003's for under $20K. Through CarsDirect, you can pick them up for closer to 17K:

http://forum.miata.net/ubb/ultimatebb.php?ubb=get_topic;f=7;t=003690

However, I would disagree with Stephen's comment about that there is no competition in the Miata market. I think that these discounts are evidence of this competition. I would bet that the S2000 is competing at the top end of the Miata market (a fully optioned out Miata could MSRP for about 28K, I think) You can buy a new 2004 S2000 for 30,995, and you could buy one used in the low 20's.

-Andrew

I dunno about you guys in the states but here in Canada we don't have as many shady car dealers like the ones you see on dateline or 60 minutes. I am always stunned by those hidden camera car buying stories where they over-charge for the car, add-on hundreds and thousands in "special" deals all while the buyer willingly accepts an interest rate of 18% It's insane!

I am lucky enough to have good credit and will be able to get 0% interest quite easily from gm. As a car buyer I will also negotiate the best price possible, or I'll walk down the street and buy a different car. The salespeople work on commission, so if they want my money they better give me a deal! Ask for their INVOICE price and add a few hundred so they feel happy, they make a profit, and you could keep it under 20000 easy!

Also you could always order a specific model, with the exact options you want and price the car to your exact specs.....then how in the hell are they gonna add $10000 to the car. You'd be a fool or a complete idiot to sign a deal for $30000. The price IS negotiable but that doesnt give them the green light to rip you off!