DETROIT – Insisting it is determined to escape the boom-or-bust incentive cycle and once and for all underscore to customers the intrinsic competitiveness of its new vehicles, General Motors Corp. announces a comprehensive new overhaul of its pricing structure.
The re-pricing is effective starting tomorrow (Jan.11), Mark LaNeve, GM vice president, North America Vehicle Sales, Service and Marketing, tells reporters at the North American International Auto Show here.
“Every Chevrolet, every Buick, every GMC and most of the Pontiac lineup” will have a new price that is, on average, $1,300 lower, but in some cases is much more, LaNeve says.
GM says the move affects vehicles that account for nearly 80% of its volume.
Chevy Cobalt LS Coupe gets re-priced.
Although the auto maker will not re-price most of the vehicles from its Cadillac, Saturn, Hummer and Saab divisions, some models will have lower prices.
Most notably that includes the Cadillac CTS sport sedan and SRX cross/utility vehicle, a model GM has struggled to properly position in the fast-moving and highly competitive CUV market. The Saturn Relay minivan also is re-priced.
Nationwide advertising of the new strategy also begins Jan. 11, and GM will encourage Internet users to compare competitive vehicles at a special “Head2Head” section at Edmunds.com, a popular vehicle-shopping website.
For vehicles already in dealer inventory, LaNeve says the retailers have received supplemental window stickers to reflect the new manufacturers' suggested retail price.
Competitive MSRPs are the only pricing method that consistently works, says LaNeve, who admits GM's heavy reliance on incentives for the last four years may have pumped sales volume but “cost the market” in terms of profitability and credibility with customers.
“We have a great story to tell in almost every segment,” LaNeve says.
“Starting right now, we are going to communicate a clear, simple message: In more segments, with more brands, GM has great product at a great price, and, in many cases, we have the best product at the best price.”
Examples of the new positioning: The Chevrolet Cobalt LS Coupe was $14,490, but under the new pricing strategy will have an MSRP of $12,990.
The new price makes the Cobalt LS almost $2,000 cheaper than the Toyota Corolla CE and undercuts the rival Ford Focus ZX3 by $1,005.
Additionally, GM cuts $1,000 from the price of its popular Impala LS midsize sedan, giving it a new MSRP of $20,990 - $4,660 less than a comparable V-6-powered Honda Accord LX and nearly $2,000 less than Ford's Five Hundred SE, which starts at $22,930.
A Chevrolet Silverado WT regular-cab pickup that formerly started with an MSRP of $19,265 now is priced at $16,990, GM says.