GM Canada May '08 Sales decline

[mpsrent]

Oshawa, Ontario (June 3, 2008) – For May 2008, General Motors of Canada dealers delivered 36,277 units, down 20% from a year ago.

“May sales results continue to reflect a rapid accelerated shift in consumer demand for smaller, more fuel efficient small cars and crossovers as a result of rising fuel prices,” said Marc Comeau, GM of Canada’s vice-president of sales, service, and marketing......

See full article here:http://email.gm.ca/corpdb/cachq/pres...8?OpenDocument

[dindak]

If GM would lower it's Canadian pricing on the Aura XR or the Malibu LTZ to near US$ pricing, I would be in. I refuse to pay $4-5000 more.

Chrysler has done much more in the way of C$ price adjustment than GM. Many are the same dollar price now in fact.

[mpsrent]

Originally Posted by dindak

If GM would lower it's Canadian pricing on the Aura XR or the Malibu LTZ to near US$ pricing, I would be in. I refuse to pay $4-5000 more.

Chrysler has done much more in the way of C$ price adjustment than GM. Many are the same dollar price now in fact.

I agree. With all the good deals the competition is offering, I find GM to be rather expensive today for a product that depreciates at a very fast rate. You may as well buy the more affordable vehicle in the first place. I'm amazed at how slow GM Canada has been at responding to the current market. It's almost as though they don't know what to do.

[stk]

Originally Posted by mpsrent

I agree. With all the good deals the competition is offering, I find GM to be rather expensive today for a product that depreciates at a very fast rate. You may as well buy the more affordable vehicle in the first place. I'm amazed at how slow GM Canada has been at responding to the current market. It's almost as though they don't know what to do.

they know what to do, but 4 000 less on the selling price of a 25 - 30k vehicule means quite a lot less profit for them. And in the position that GM is right now it's quite hard to adjust price this way. Sure they would make more sells, but would those vehicule compensate for the narrower profit margin?

I think they should adjust price, maybe not 4,000 less but maybe half of it... this way we get some decent pricing and GM still get's a nice profit from car's sold in Canada.

[Aprime]

I'm surprised Chrysler's heavy pricing revisions haven't caused a price war of some sort yet.