GM Cranks Up Discounts After a Slow January
In efforts to reinvigorate its sales after a slower-than-usual month of January, General Motors (NYSE:GM) is laying it on thick with the promotions and incentives for February, extending a President’s Day sale throughout much of the month. The event began on Tuesday and is expected to run right through the 28th.
Automotive News reports that GM is offering $500 to $2,000 in cash on most models and have bettered a lease pull-ahead deal, which waives two months of payments (up to $1,000) for lease customers. Part of the promotion includes the most substantial price cuts on the 2014 Chevy Silverado and GMC Sierra pickups since they hit showrooms last summer.
The V6-powered pickups will be available at the same rate that dealership employees can purchase them at, and Chevy is pushing $7,000 off of a double-cab V6 All Star model. Despite the new product, General Motors’ pickup market share has slid slightly as aggressive discounting practices from its competition appeared to overcome the excitement of the new models.
GM’s slice of the American pickup market has typically remained in the 35 to 40 percent ballpark, but for four of the last five months, it has been stuck at 33 percent or lower.
General Motors spokesman Jim Cain didn’t go into any further detail about the promotions with Automotive News, but it sounds as though the brands are trying to unload their stock of V6-powered trucks — not wholly unexpected, after the V8 models proved to be so popular that Chevy ran into production issues trying to keep up with the demand for those particular models.
Cain said to Automotive News that the V6 units are ”packed with value and blow away anything we’ve done in the past.”
Further, he noted that GM’s promotional activity has been quieter than some of its competitors. “When you have discipline and great new products, you can do these short-term tactical plays to drive traffic,” Cain said to the publication.