General Motors has taken the unusual step of lowering prices of some US market SUVs by $US1,500 to $2,000 after sales fell in January, according to the Detroit News.
Go deeper with GlobalData
The paper said the price cuts improve deals on the Chevrolet TrailBlazer, GMC Envoy and Buick Rainier, which already carry $2,000 cash rebates. GM also reportedly shaved $750 off the price of the low-volume GMC Sierra and Chevrolet Silverado 1500 regular cab fleet size work pick-up trucks.
GM spokeswoman Deborah Silverman told the Detroit News that the changes were of an ongoing review of GM’s competitive position but the midsize SUV cuts were squarely aimed at competitors attempting to undercut GM.
“There were several entrants priced below GM vehicles and the adjustment was made to ensure we remain competitive in that segment,” Silverman reportedly said.
The Detroit News said the three SUVs were once amongst GM’s best selling vehicles, but the trio posted a sales free-fall last month with TrailBlazer volume down 46.4%, Envoy down 51.8% and the Rainier 26.9% lower than a year earlier, according to Autodata Corp.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe paper noted that GM does not advertise price adjustments so it will be up to local dealerships to promote the deals.
Retailers will get some help, however, from web sites that consumers use to research vehicles before heading to a dealer, the Detroit News added.
Spokesman David Reuter told the paper that Ford doesn’t plan to immediately match GM on the price cuts.
