GM To Slash Prices! - Detriot News 1/6/2006

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GM to slash prices

Automaker to replace rebates with lower tags on some vehicles to shore up sagging sales.

Brett Clanton and Bryce Hoffman / The Detroit News

DETROIT-- General Motors Corp. will use the Detroit auto show to launch a sweeping vehicle pricing strategy that will be its broadest effort yet to lower sticker prices on cars and trucks and wean customers off huge rebates.



The plan, which will be outlined Tuesday at the North American International Auto Show, is aimed at jump-starting GM's faltering U.S. sales at the beginning of a critical year.

ID=/20060106/AUTO01/601060373/1148

[Arizona Slim]

Originally Posted by LaNeve

We think our product story has gotten lost in all the reporting of our financial results.

Or..... you could focus your marketing on product, instead of rebates. Just a thought.

[plane]

Originally Posted by Arizona Slim

Or..... you could focus your marketing on product, instead of rebates. Just a thought.

When I purchase a vehicle, i don't look at horsepower, gas mileage, towing capabilities or creature comforts.

I just look for the dork in the red tag costume.

Yep.

That's what really motivates my sale.

[moman]

GM should focus more on product. I was at at Chevy dealership the other day and looking at the vehicles the stickers gave me shock. A 2006 Tahoe Z71 was 50,XXX and a 2006 Silverado Ext cab 4x4 was 34,000 + dealer add ons that added 3,500 to the price. It was such a joke too "Rustproofing", "spray in bedliner (kind of nice)". And we wonder why consumers have lost confidence in dealers...?

[importedtuna]

Otherwise known as the Value Pricing Total Promise Really This Time We Aren't Keeping Prices Artificially High For the Next Rebates Xtreeeeme! Program.

[godsthere]

I always thought that the prices on most cars are so high because of leasing. The higher the price the more interest that Gmac makes on a lease.

[saturnsteve]

This won't work! I said it last time we had the "Total Promise Price" crap, this won't work. GM and others have screwed themselves, the public just will not go for this at all! WAKE UP GM!!!! WE ARE DYING HERE!!!!

[Mcmflow]

They can prove this by starting with the 07 GMT900's, cut the MSRP 3-4K off 06 MSRP, they are still going to be making good money (considering they can take 10K off MSRP now) and it would really seem like a great value, especially when Ford and Toyota equals are starting that much higher

[A CHEVYMAN]

Whats So Bad About Higher Msrp's And Large Rebates. It Makes The Customer Feel Like Their Getting A Deal. Less Discounts From The Msrp Makes The Customer Feel Cheated By The Dealer. Lets Face It The Consumer Is Used To Getting A Big Discount And Lets Give It To Them.

[Mcmflow]

Originally Posted by A CHEVYMAN

Whats So Bad About Higher Msrp's And Large Rebates. It Makes The Customer Feel Like Their Getting A Deal. Less Discounts From The Msrp Makes The Customer Feel Cheated By The Dealer. Lets Face It The Consumer Is Used To Getting A Big Discount And Lets Give It To Them.

But on the otherside of the coin, when the MSRP is so much lower than the competition, people look your direction first and then once they see that the car/truck is nice and high quality, they are impressed and buy. That's what has helped Hyundai grow so much!

[tgagneguam]

Originally Posted by A CHEVYMAN

Whats So Bad About Higher Msrp's And Large Rebates. It Makes The Customer Feel Like Their Getting A Deal. Less Discounts From The Msrp Makes The Customer Feel Cheated By The Dealer. Lets Face It The Consumer Is Used To Getting A Big Discount And Lets Give It To Them.

On some level, I agree. But I think the problem that this creates-and one that Detroit cannot shake-is that consumers believe the constant firesale strategy reflects the weakness of the products that Detroit sells. It's hard to believe that a product is world-class but is being giving to you at an "everything must go" price.

Perhaps it's time to try a new strategy. Build a great product, and stand by it by asking for and expecting a fair price to be paid for it.

[ScottS]

Um, didn't I read all those same stories 6 months ago....

[importedtuna]

Originally Posted by A CHEVYMAN

Whats So Bad About Higher Msrp's And Large Rebates. It Makes The Customer Feel Like Their Getting A Deal. Less Discounts From The Msrp Makes The Customer Feel Cheated By The Dealer. Lets Face It The Consumer Is Used To Getting A Big Discount And Lets Give It To Them.

Because it is a game and it is BS. People are turning to the Korean cars because they are priced low from the start. You can't argue with their sales increases and market share gains. Rebates are a shell game ripoff.

[Parkwood60]

Maybe they oughta take another play from the Korean's book, and offer the best warranty in the business too. And, if you make the balance transferable to the second owner, it will boost resale value as well. I'm thinking something like 5 year 50,000 miles on everything except tires, and brake pads, bumper to bumper. And how about a year or so of free oil changes and other scheduled service? You'd think this stuff would cost them less than the rebates they have been offering, and rebuild customers image of the dealer network, and the company.

Otherwise, I saw concentrate on selling to your old core buyers, and also sell to the youngest buyers who haven't had a chance to drive a 1980 Buick Estate Wagon with peeling paint and a deisel engine that hardly made any power, except just enough to put a rod through the block.

[rsbaker]

GM should be as aggressive as it can afford to be when it comes to reducing MSRP. If, for example, the new 2007 GM900 Trucks and SUVs have a MSRP substantially lower than the 2006 models, then potential customers will be pleasantly surprised when they walk into the showroom. If they are also subsantially lower than the competition on similar models and the vehicles are much better in every measurable way, then those customers will have to seriously consider GM when they may not have before. It would be nice to see the Japanese and the Europeans faced with falling market share for a change. Boeing Aircraft regained number "1" spot against Airbus Industie with more than 1000 aircraft orders in 2005 after being in the number "2" spot since 2001. I want to see GM ,the other great US Manufacturer, do the same and get back to at least 30% market share. What's good for GM in this case will also be good for the country.