USA Today reports that GM will make consumers pay extra for safety items that were previously standard equipment. The newspaper says that the move reflects pressures to cut costs in the intensely competitive and margin-trimmed US marketplace.
According to the report, GM plans to make buyers of most of its 2003 vehicles pay extra for anti-lock brake systems and side air bags, previously supplied as standard equipment.
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The report adds that GM currently has standard ABS on 52 of 58 models and standard side air bags in 31 models and among 2003 models, but will offer ABS as standard only on its six Cadillac and two Saab models, plus Pontiac Bonneville, Chevrolet Corvette and Buick LeSabre. Side air bags will remain standard on only the Cadillacs and Saabs.
GM spokesman Jay Cooney told USA Today: “We’re not taking these safety options away, just competitively pricing them.”
USA Today says that over time, GM has loaded its cars with standard equipment but competitors have generally not followed the policy.
GM product boss Robert Lutz has been reviewing GM’s product line-up, looking to trim unnecessary features and follow competitors on features that carry charges.
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By GlobalDataThe newspaper adds that GM could make a saving of more than $100 million a year on ABS and side air bags, pointing out that ABS costs the automaker about $160 per vehicle, with side air bags averaging more than $100. As options they are marked up heavily.
