Car sales sites are abuzz with the latest car sales data, but not everyone is so eager to take a peek.
Allison, a German automaker that makes compact cars and luxury sedans, recently announced that it is selling off a whopping 17,000 of its new-generation C-Max models to raise money for the World Food Programme.
The news has stirred up plenty of debate, with some arguing that the automaker should be selling these cars at a discount to the current price tag of $46,000, while others argue that selling off the cars for charity is justifiable.
The automaker’s announcement comes after Allison announced in March that it was selling its C-Series vehicles for less than half their original cost.
A lot of the criticism has focused on the fact that the new-gen cars will only sell for $45,000 and will cost less than they did at the end of 2015.
The company says that the sale will be the first in its history, and that it plans to “ensure that the C-Models remain a core product for our global family of brands.”
Allison said it has sold approximately 2,600 C-Cores since it launched the new C-series cars in 2018.
It also said that it has made $8.6 million in revenue during the current fiscal year, with about $2.6 billion in total revenue.
Allison’s announcement was met with a lot of criticism from critics, with many saying that the company should have done a better job marketing the cars to the public.
One user on Reddit, r/Amerika, wrote, “If I had to guess, I think Allison sold all the cars before it made the announcement, or that they sold them too cheap and got rid of the extra $3,000+ for charity.
But if they had a better marketing plan, I would’ve guessed that they sell them for $4,000 less, at least.”
Another user wrote, “[W]hat is the point of this sale?
How do you get people to buy this car, for less?
Are you selling the cars at the current MSRP of $47,000 or $50,000?”
Another user on another subreddit, r /Cars, wrote that the price of the new cars is “the best part.”
“Allison was sold for $3.6M.
Now, we have to wait until they sell the C.
Models and all the other cars to see if the prices are lower or higher, and whether or not they will be available at MSRP for more than $10,000.
If Allison sells all these cars for less, I’m sure we’ll see them at MSRPs of $45K-50K,” another user on r /cars said.
Allison has been struggling to maintain profitability over the past few years.
In March 2017, the automata said that its total loss for the year was $4.8 billion, and its net loss for that year was only $4 million.
Allison did not immediately respond to a request for comment.
The announcement came just weeks after Allison released its first quarterly financial report since 2019.
The automotive company reported revenue of $835 million, up nearly 50 percent from the same period in 2019.