GM Offers Lower Prices, Not Incentives
By Brandon Truttling
Web produced by Christine Lasek
January 11, 2006
General Motors used the North American International Auto Show as a backdrop for a blockbuster announcement. Starting immediately, consumers will see new sticker prices on most cars and trucks.
General Motors is rolling out its new Fast Start pricing system, hoping that lower prices, and not incentives, will drive sales.
The new pricing will bring the stickers down on 80% of their vehicles, starting with the Chevrolet brand. The Cobalt will drop $1,500, and the base on the Silverado pickup will drop more than $2,200.
GM Chairman Rick Wagoner admits it will be difficult to wean buyers who are addicted to rebates and incentives.
"We’re going to make sure that people understand what we’re doing, why we’re doing it, and really try to get the focus back on, ‘We have great cars and trucks at great values every day for you.’ Is it without risk? No, it’s not without risk, but we think it’s the right time to move," Wagoner explained.
Jean Jennings is the Editor and Chief at Automobile Magazine. She told 7 Action News that it will be difficult to retrain consumers.
"TheyÂ’ve created a bad scene over there with the incentives, but itÂ’s true, they have to clear the floor. They have to clear the floor so they can drive the new cars out," Jennings explained. "ItÂ’s a good price on the truck. That should do every well.
just heard this on the radio and sounds like it starts tomorrow.
just heard this on the radio and sounds like it starts tomorrow.
it already started, i ordered a truck 3 weeks ago.it came in yesterday.i had a 3500 rebate coming and the salesman told me they dropped the rebate to 2500.00 but reduced the price of the truck 1800.00.that's a 800.00 more savings to me!
...they are officially on there way out, shouldn't be too long before they start liquidating and selling off bits and pieces.....doesn't mean I won't take advantage of a deal
all the others will followl
GM needs to spin off its most successful models into a new brand that uses non-union labor and leave the lesser selling brands in the hands of union workers. A price reduction is just rearranging the deck chairs on the Titanic. The labor related overhead is growing at a rate faster than GM can increase their profits.
I'd pay sticker for the new concept Camero
Anyone think this would make prices cheaper then the red tag or employee pricing???
Posting Permissions
Reply With Quote