It had to end sometime, and at this moment there's been no word from the General on another extension to its wildly popular Employee Pricing promotion. That, of course, could change at any moment. GM, however, is eager to wean its customers from the heavy incentives it's offered ever since the attacks of 9/11 forced all domestic automakers to do whatever it takes to clear their inventories. In the wake of these incentives, GM is expected to announce price cuts this week for the majority of its 80 models of cars and trucks. The four-cylinder Pontiac G6, for example, will have $3,000 slashed from its sticker price. We believe these price cuts are another good move for GM, as its recent pricing strategy left customers confused as to what the actual value of a particular vehicle was. In addition, these bloated prices made GM's vehicles seem overpriced when compared to other vehicles via online shopping sites, which often go by MSRP alone and don't take into account current incentives. The real question is whether or not GM can get the word out about its price cuts as effectively as it did the Employee Pricing promotion. Backed by decent marketing and a steadily improving product line, GM is poised to maintain some momentum in the second half of 2005.
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