Boston, MA 10/17/2013 (wallstreetpr) – The supremacy battle for the U.S. pickup truck market is red-hot. But General Motors Company (NYSE:GM) has just added another twist to it that seems a little odd. The automaker has increased the sticker prices of its base 2014 Chevrolet Silverado by around $2,100. This increase is almost 8.5% above the price at which the trucks hit the showrooms. This 8.5% boost in sticker price affects other versions of Silverado and GMC Sierra.
In this increase, it now means base crew cab will ask for $35,095 from $33,195. And Silverado sticker price will ask for $26,670 up from $24,585.
As odd as raising prices may seem to be in this violently competitive market car market segment, GM is up to something. The automaker seems to be keen in driving up its sales with big discounts to buyers that go beyond what its competitors Ford and Chrysler cannot afford. These discounts are expected starting next month and the dealers will be advertising them so that customers can feel they are getting the best treat from GM.
Increasing sticker prices and then offering larger-than-usual incentives is a clever marketing strategy. And GM appears to be reading from this script in its latest twist to the red-hot U.S. truck market.
In September, GM had a poor run with its pickup sales dipping 8% at a time when Ford and Chrysler realized increased sales in this market segment. Chrysler’s sales went up by the same percentage GM fell, while Ford noted increase on 10% on its truck sales for the month.
The fell in GM truck sales can be contrasted to what its competitors in Detroit did. The competitors essentially offered sweeter deals and drew a lot of buyers. It is the same thing that GM is trying now, but with a different approach.
Comparing the Detroit competitors who control almost 90% of the market, the GM announced sticker price increase means Silverado will sell at $1,780 higher than Chrysler’s Ram and exceed Ford’s F-150 by $1,605.
