GM sticks With Original Pricing Plan to Capture Auto Industry
March 28th, 2006 by admin
Auto News: GM sticks with plan
GM will continue to lower prices instead of offering discounts and incentives for the next year.
GM began of lowering the price of their cars with the "American Revolution" ad campagn. Now, instead of offering rebates and extras with their vehicles, GM’s vehicles will actually be cheaper than the competition.
GM announced this news while they continue to lose market share against fierce competitors.
General Motors Corp. expects its U.S. market share to continue to fall in the first quarter of this year due to aggressive competition, but said that won’t reverse its strategy of lowering prices and relying less heavily on discounts, GM marketing officials said Monday.
"We’re certainly not pleased with current share levels and we’re not satisfied with it, but we have to run this play," said Paul Ballew, GM’s executive director of market and industry analysis, in a teleconference with analysts.
"We’re certainly not pleased with current share levels and we’re not satisfied with it, but we have to run this play," said Paul Ballew, GM’s executive director of market and industry analysis, in a teleconference with analysts.
GM is in the same boat as the rest of the American auto world. Maybe, once this pricing program matures, there will be forbearance of profit, eventually.
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