• Mar 28, 2006
On Monday GM sales analyst Paul Ballew announced that the General’s market share would slip a percentage point in the first quarter to 24 percent compared to a year earlier. Mark LaNeve, the company’s VP of North American sales (a.k.a. Captain Obvious), also called the sales outlook for 2006 “very challenging”.

But GM has had some recent successes it plans to capitalize on in the coming year, including strong demand for the company’s redesigned lineup of GMT900 full-size SUVs. The Tahoe is on track to sell 120,000 units this year, which is ahead of last year’s sales rate that predicted only 100,000 Tahoes to be sold by year’s end.

The company has also put down the incentive stick with which it beat consumers over the head with last year in favor of a new pricing strategy that has resulted in lower and less complicated base prices. The new strategy should lead to higher transaction prices for each sale compared with the incentive laden sales of yesteryear.

[Source: Automotive News]


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    • 1 Second Ago
  • 6 Comments
      • 8 Years Ago
      How do you know this, PuffChippy? Loosing market share to the tune of 1% point within a 3 month period...does this automatically translate into higher profitability?

      If so, I'd like to know where you went to school. GM's fixed costs are astronomical.

      Will we hear how much money they made next week when the results come out? Umm, let's just wait and see on that one.

      • 8 Years Ago
      Jim, sorry it's off subject, what what did you end up giving for your silverado, and what are instant value coupons? I'm currently in the market for a silverado, and this would be a great help.

      Thanks
      • 8 Years Ago
      LESS COMPLICATED? Um, no. I recently purchased a silverado. Nice truck.
      It had a march madness discount; could you see which trucks had that online? no. I called 30 dealers to find one interesting truck with that particular discount. These dealers generally had to ask somone themselves and call me back. The march madness discount was advertised as $1000, but in fact was $1500. Many dealers either didn't know this or tried to use this to pry more money out of the deal. Then there are the instant value coupons. I got two of these, but could have gotton 4 by gm rules, which just makes me wonder if I got a "good deal" or not. Then there is the business choice rebate, which is the ultimate "see dealer for details" rebate. The dealer faxes off my business incorporation papers and _maybe_ in 2-3 months according to the dealer I will get an extra $500. Just look at their rebate page. They have rebates like "excludes L61 engine", but you have to go to Wikipedia to find out what an L61 engine is. This doesn't count the old complications of holdback, gm card limits and topoffs, etc.

      They lowered the MSRP, they still make good trucks, but they _did not_ simplify the pricing.
      • 8 Years Ago
      Kudos to GM for having the discipline AND the guts to let this value pricing strategy take hold. It would be very easy to engage (once again) in the incentive jihad that GM has been participating in and leading since 9/11. But we know now, kind of like Bush's Iraq policy, that that was a failed strategy.

      Many of these new GM vehicles are excellent. The new Tahoe and the new Lucerne, in particular, are ten times better than the vehicle they replaced.
      • 8 Years Ago
      Koba,

      See Edmunds for discusson of pricing: http://townhall-talk.edmunds.com/direct/view/.ef18fa8
      I think it is off topic here.
      • 8 Years Ago
      GM shouldn't be concerned with market share, it should be concerned with profit, which it appears it is. Sounds like the plan to sell fewer vehicles yet make more money on each is working.