General Motors on Tuesday announced plans to slash prices on most of its models as part of an effort to more accurately reflect what consumers are willing to pay and move away from the heavy incentives that confuse buyers and take a bite out of its profits.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Dow Jones Newswires, GM is trimming retail prices across the board on its top-selling Chevrolet brand, as well as on vehicles produced under the GMC and Buick names. Prices will also be slashed on certain vehicles produced by the company’s Pontiac and Cadillac divisions. In total, 57 of GM’s 76 models will be eligible for discounts.
Mark LaNeve, head of sales and marketing for GM, reportedly said at a press conference that the average price reduction on eligible vehicles would be US$1,300, with cuts as high as $3,000 on some vehicles. Incentives would still be offered, he said, but these are expected to be lower than what is currently available.
LaNeve said customers have become frustrated with trying to keep up with incentives, Dow Jones noted.
“They say, ‘Incentives are confusing and we don’t want to figure it out’,” LaNeve told the news agency. Repricing is “what our customers are asking us to do.”
Dow Jones added that GM, the world’s largest vehicle maker by volume, has seen its share of the US market fall steadily in recent years as nimble foreign competitors such as Toyota and Honda make inroads in GM’s core market.
GM’s eight brands accounted for about 26% of sales of cars and light trucks in the U.S. last year, down more than a point from the previous year. At its pinnacle, GM controlled well in excess of 50% of the US market, the news agency added.
