GM shifts from rebates to price cuts. Remember when GM began offering their Employee Discount for Everyone deal? More car makers followed suit soon after. Now GM is forced to change its strategy by cutting prices and offering improved warranties. These deals will affect the 2006 models; details about another program for moving 2005 inventory out will be released tomorrow.
The New York Times published this news as well.
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At least they are responding to the competitive situation in a way that may avert bankrupcy.
However, it is sad that american cars have become the ‘cheap, unwanted’ car, and foreign cares have became the trusted, desired car.
They are counting on the fact that they will be able to make up for the price cuts through volume, which could be a risky bet, especially if the public still prefers “foreign” over “American” (not that those labels are accurate anymore).
Actually, they are probably counting on making money via the loans on those cars, they are almost selling those things to a loss to the dealers.
Of course, this makes the residual car value of my GM go to crap. Now I’ll have to drive it ’till it dies…
Good point, GM sells cars and provides financing — a match made in heaven.
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