GM Cuts Sticker Prices on Majority of Product Line

The North American International Auto Show held this week in Detroit provided the backdrop for General Motor’s announcement of permanent price cuts yesterday. Effective Jan. 11, the price cuts are being made on 57 of the company’s 76 models including all 2006 and 2007 Chevrolet, Buick and GMC models as well as most Pontiac cars and trucks.

“This is a big step for us and arguably the biggest price repositioning in our history,” said Mark LaNeve, GM vice president, North America vehicle sales, service and marketing. “This move is in line with our customers’ desire for simple, compelling prices.” Under the new pricing structure, Manufacturer’s Suggested Retail Prices (MSRPs) have been reduced by as much as $2,500, with an average reduction of $1,300.

Combining this price repositioning with adjustments made to MSRPs at the beginning of the 2006 model year, GM has lowered prices on vehicles representing about 90 percent of its volume. In a news announcement on GM’s Web site, LaNeve says the aggressive repricing action at the beginning of the 2006 model year was effective in improving sales performance of the new-launch products. This action allowed for clearer comparisons to competitive vehicles and pricing simplicity. It also allowed nearly two-thirds of new vehicle buyers using the Internet to research their purchase to get strong MSRP comparisons.

“As we head into 2006, we’re launching 19 new products that represent over 1.5 million vehicle sales,” LaNeve said. “Today’s action allows us to talk more about the features and benefits of all of our vehicles and to spend less time talking about ‘the deal.’”

Among reported price changes of interest to green industry professionals are lower stickers on Chevrolet Silverado models. The Chevrolet Silverado regular cab pickup will sell for $16,990, down from $19,265. A similarly equipped Dodge Ram is $22,085 and Toyota Tundra is $19,235. Additionally, the Silverado Crew Cab WT has been reduced from $27, 990 to $25,490.

For more information, visit www.gm.com.