Insisting it is determined to escape the boom-or-bust incentive cycle and underscore the competitiveness of its new vehicles, General Motors Corp. announces a comprehensive overhaul of its pricing structure.
The re-pricing took effect Jan.11, Mark LaNeve, GM vice president, North America Vehicle Sales, Service and Marketing, tells reporters at the recent Detroit auto show.
“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.
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 the Cadillac CTS sport sedan and SRX cross/utility vehicle. The Saturn Relay minivan also is re-priced.
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.
“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,” LaNeve says.