GM to continue limiting incentives, Wagoner says

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David Barkholz | | Automotive News / August 10, 2006 - 11:08 am


General Motors plans to continue holding the line on new buyer incentives, despite reducing its forecast on industry-wide North American sales this year of light and heavy vehicles, GM CEO Rick Wagoner said today.

Wagoner declined to make any comment on GM’s study of a possible alliance with Nissan and Renault.

Wagoner also refused to talk about when a Delphi Corp. bailout deal might be done or elaborate on what form it might take. Previously, Wagoner said GM hoped a deal would be done by Labor Day.

“We’d like to proceed to an agreement as soon as we can,” Wagoner said. “People at GM are working very hard on it.”

Delphi will be in U.S. Bankruptcy Court in New York on Friday, Aug. 11, arguing for court approval to terminate its labor agreements if it cannot get major wage and benefit concessions from its 33,000 unionized workers represented predominantly by the UAW.

GM is paying billions of dollars to help Delphi retire and buyout workers. Analysts also have speculated that GM might have to subsidize Delphi hourly wages for a year for the 10,000 or so UAW workers who will be left at the supplier by year end.

Wagoner said GM enjoyed its best retail month of the year in July as it brought its North American market share to just under 27 percent.

He said the successful launch of GM’s new large SUVs and strengthening sales of models such as the Pontiac G6 and Buick Lucerne are being achieved with limited buyer incentives.

This year GM has reduced its incentives by an average of $1,000 per vehicle, while competitiors’ incentives, especially at the Chrysler group, have increased.

Wagoner said GM could switch production from one of its full-size SUV assembly plants to full-sized pickups if demand requires. GM is launching its next-generation Chevrolet Silverado and GMC Sierra this fall.

Overall, Wagoner said GM is forecasting that total North American light and heavy vehicle sales will decline this year to 17 million vehicles from 17.5 million vehicles last year. He said 2007 promises sales comparable to this year’s.

You may e-mail David Barkholz at dbarkholz@crain.com

[MNdudeswitz]

Yes!!!!!!!!!! This is what I want to hear, keep it up GM!

[asim]

Originally Posted by MNdudeswitz

Yes!!!!!!!!!! This is what I want to hear, keep it up GM!

I don't see incentives going down, look at the GMT-900s. Well hopefully they will stick to their work...

[GM_Fanatic]

GM is going strong!!

It see like I have said something along those lines so many times in the last month. I love it!

[steverino]

GM is beginning to see the light at the end of the tunnel

[dlr]

They'll get there. GM just needs to keep coming out with more desirable vehicles and keep there costs in check.

I still say 2008 will be the year for GM to really start changing perceptions and maybe gain some market share.

[Media!]

They need to really start showing it.

[spaz]

Pontiac G5 rebadge and CSV's aside it looks like GM is really moving forward on all fronts in an organized, and calculated way for the first time in nearly 40 years. The current-gen chev malibu really is a microcosm of GM's lackluster product development efforts of the past 20 years. As soon as i saw the spy shots of the '08 refresh, and how much effort is being put into it, really made me feel like GM has its act together, just in time for the Toyotagate recall scandals.

[Perian]

Originally Posted by MNdudeswitz

Yes!!!!!!!!!! This is what I want to hear, keep it up GM!

Hello...

Are you forgetting that GM lowered pricing by an average of $1300 per vehicle last January?

Are you forgetting that the GMT900's were introduced with lower pricing?

Of course the incentives have been reduced from last year...but no one at GM seems to be reminding us that the over-inflated list prices have also gone down compared to last year.

[Jayorbird]

Originally Posted by GM_Fanatic

GM is going strong!!

It see like I have said something along those lines so many times in the last month. I love it!

you never know and even us, too! I heard they will slow down the Big SUV lines. It's sound bad news....


I don't know if GM will stay longer...........

Bird

[coaster.n3rd]

Originally Posted by asim

I don't see incentives going down, look at the GMT-900s. Well hopefully they will stick to their work...

What? Last year every vehicle had heavy incentives. Only a few lines have incentives this year. I don't understand how you don't see that incentives are way way down this year.

[coaster.n3rd]

Originally Posted by Perian

Hello...

Are you forgetting that GM lowered pricing by an average of $1300 per vehicle last January?

Are you forgetting that the GMT900's were introduced with lower pricing?

Of course the incentives have been reduced from last year...but no one at GM seems to be reminding us that the over-inflated list prices have also gone down compared to last year.

Lower pricing is not an incentive. The total of actual incentives not including the lower pricing is down considerably from last year.

[tgagneguam]

Wagoner said GM enjoyed its best retail month of the year in July...

I keep reading this and have to wonder if this is the biggest nonstatement of the year. Isn't it traditionally July of every year that's the biggest sales month of the year until that point? (I'm way too lazy to check out sales archives to test my hypothesis, though I cannot imagine it's too far from reality). What's the point of making the statement, then? I'd like to hear that GM had its best July for retail sales ever. I think that that would be something worth noting. But I guess I'll have to wait.

[DuSpinnst]

Originally Posted by tgagneguam

I keep reading this and have to wonder if this is the biggest nonstatement of the year. Isn't it traditionally July of every year that's the biggest sales month of the year until that point? (I'm way too lazy to check out sales archives to test my hypothesis, though I cannot imagine it's too far from reality). What's the point of making the statement, then? I'd like to hear that GM had its best July for retail sales ever. I think that that would be something worth noting. But I guess I'll have to wait.

Considering GM's deals this summer are MUCH worse than they where last year, you would think consumers would need to be weened off of them. But apparently the market has snapped back and cars are still selling.

[doh]

It is what all of the Big 2 1/2 have to do, but Ford doesn't seem to be following suite in Canada as of yet anyways. They just added $500 to most 06's and $1000 to ordered 07's today.