GM Plans Incentives on Colorado/Canyon

General Motors Corp. expects to offer incentives on its new '04 Chevrolet Colorado and GMC Canyon models when they're launched later this year, but the spiffs will be lower than those currently available with the '03 S-10/Sonoma models, promises one marketing executive.

Despite the lower incentives, GM predicts it still will gain share in the midsize pickup market as a result of the new models.

“We're in this to grow market share,” says Craig Bierley, GMC Canyon marketing director. However, he says the gains won't be as big as those GM has enjoyed in the midsize SUV market as of late.

“We had a capacity issue,” Bierley says. But with increased availability, crew cab will capture 40% of Canyon volume in 2004, compared with 13% for Sonoma in 2003.

GMC has not announced Canyon pricing, but Bierley predicts the base will not be significantly higher than the '03 Sonoma, which ranges from $16,000 to $24,000. The competitive situation mandates some incentives be offered at introduction, he admits.

Even with incentives the trucks will make money, Bierley says. “We don't sell any pickups that we don't make money on,” he says, adding that the higher portion of crew-cab models will help improve margins.