January 10, 2006

NOTHING COSTS MORE THAN IT USED TO:

GM Plans to Trim Prices on Most Vehicles (DEE-ANN DURBIN, 1/10/06, AP)

General Motors Corp., which has been losing market share in the United States to Asian automakers, said Tuesday that it will lower the prices on 57 of its 76 models in North America in an effort to boost its sliding market share and wean buyers off expensive incentives.

Mark LaNeve, vice president of sales and marketing for the world's biggest automaker, told reporters that the program will lower the manufacturer's suggested retail price by as much as $2,500 on some vehicles, but the average decrease will be $1,300.

Posted by Orrin Judd at January 10, 2006 1:35 PM
Comments

The best thing GM could do is shut itself down and allow independent investors and/or other car companies to buy its brands.

GM as a brand is toast. They, like United, don't deserve to survive in a market economy.

Posted by: Bruno at January 10, 2006 1:44 PM

Had to see this coming after those Employee Discount promotions this summer caused a huge surge in sales. That proved that there is a price point at which US consumers will buy these cars: ~$2k less than where they were priced.

Posted by: Jeff Brokaw at January 10, 2006 1:48 PM

$1300 just about amounts to the 'legacy' costs they are saddled with per car. A good place to start.

Posted by: Tom C. Stamford, Ct., at January 10, 2006 1:54 PM

The article was highlighting the Impala, which is assembled in Canada, not the US. Does GM pay the same wages in Canada as in the US? If they pay less to Canadians, will we be seeing more price drops as GM moves all of its assembly out of the US?

Posted by: mike at January 10, 2006 3:54 PM

I do not believe there is a low enough price that GM could offer for almost any of its products that would make me look away from a Camry, an Odyssey, an Accord, an Altima, a Pacifica, a Maxima, or a PT Cruiser. And we're not even talking upscale models yet.

If I bought one of them, I would expect to get close to 100,000 miles with no troubles at all. And they would be enjoyable miles, too. I have driven enough GM and Ford rental cars to know that I will never own one.

Posted by: ratbert at January 10, 2006 4:07 PM

I've owned 2 Amrican cars in last 15 years: 92 Ford Explorer which was recently totaled with 155,000 miles and a 1988 Buick Le Sabre, stolen with 135,000 miles.Could have gotten 25-50m more out of them.

Posted by: Tom C. Stamford, Ct., at January 10, 2006 4:34 PM

'95 Ford Escort sedan base model was a tough, durable little year/model too.

It was my first new car, and is still running, with few problems over the years.

Posted by: Michael Herdegen at January 10, 2006 4:54 PM

1994 GMC Sonoma truck. 177,000 and going strong.

Posted by: Bartman at January 10, 2006 5:31 PM

My first car was a 1978 Chevrolet Monza, which was a private annuity for my mechanic and a textbook example of poor design, poor engineering, and poor manufacturing. It's been well over twenty years since that beast went to the scrap line, but I still would never so much as look at a GM car.

Posted by: Mike Morley at January 10, 2006 5:32 PM

1994 Suburban (2-wheel-drive); replaced the transmission fairly early due to some new-version issues, but we're at about 170,000 and still going strong. And it's a very comfortable car, too, despite its legacy. While it wouldn't be the best for narrow, winding mountain roads, give it a fairly straight shot like I-90 from Seattle to Spokane and it's wonderful--actually more comfortable than my '97 Accord SE.

Posted by: Kirk Parker at January 10, 2006 7:47 PM

GoB Sale.

Posted by: Robert Schwartz at January 11, 2006 2:27 AM

We're now on our fourth Ford in the last fourteen years--Tempo, Escort wagon and two Focus wagons. No problems except minor irritants like noise and the odd uncooperative door. Tough and dependable, but I've heard lots of complaints from folks with higher end models. Serves 'em right, I say.

Posted by: Peter B at January 11, 2006 4:57 AM
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