Boston, MA 02/11/2014 (wallstreetpr) – General Motors Company (NYSE:GM) it appears has opened the flood gates for new car buyers in North America. Apparently, the company has ditched lofty ‘disciplined approach’ comments offered by the likes of the CEO of the company Chuck Stevens and instead follow the well-trodden path of incentives and great deals to pull in the profits.
Incidentally, when Chuck Stevens claimed the General Motors Company (NYSE:GM) would follow the established approach for the company- that of discipline in pricing and no supply and demand approach, investors in this car-makers stock had lots to cheer! GM reported sales had dipped to 12% in January and the inventory on hold was over 114-days against the industry-standard of 60 days.
Unfortunately the bravado does not appear to have lasted long
Cornered and pressured, GM Executives have announced, on President’s Day a range of promotions and deals.
Cash back and other incentives
General Motors Company (NYSE:GM) has offered new customers of its pick-ups, across the bands- Chevy, Buick, GMC models ‘attractive’ lease deals as well as cash-back, rebates valued at $500 to $2000!
Interestingly, the maximum rebates and discounts are planned for the all new range of pick-ups as well as the Chevy Silverado plus the GMC Sierra. Nearly, the entire list of new vehicles has some of the best reviews for the season and at the time of launch had been touted not to be sold as part of cash-backs or rebates.
General Motors Company (NYSE:GM) is not a standalone player, who is struggling against poor sales. Studies by analysts have found that the US car-buying segment has now reached saturation. Now the buyers of new cars will look for value-additions- cash-rebates, incentives and many more to reach out and bring-down the inventories of over-stocked car manufacturers.
Will GM price-cuts see other makers too become part of the car wars? Answers are awaited!
