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http://www.usatoday.com/money/autos/2005-02-20-gm-prices-usat_x.htm

Cliff Notes version: GM is lowering MSRP costs on their SUV's in lieu of using high rebates because they think people are not considering their SUV's due to initial sticker shock, before they even bother to find out what incentives are available.

My take: Someone at General Motors must have finally opened their eyes! For years the magazines have ranked GM cars low in comparisons, and otherwise badmouthed them for not being a very good value because of their price. Those big discounts off of MSRP also result in the poor resale figures for the car, which also leads to more bad press and public opinion.

With a lower initial sticker price, GM automatically puts some perceived value back into their vehicles. People don't automatically think they are overpriced compared to company X's offering. Next, people find the trade in value 3 years down the road isn't as far from the original MSRP as it had been in the past. The car really depreciated the same amount, but it doesn't look like as much on paper anymore.

What does it end up costing GM? Nothing. As long as they resist the temptation to boost incentives back up! The downside is that it makes them look more like a discount automaker, but at this point that is exactly what they look like when they are knocking $10,000 off MSRP with no haggling anyway.
 

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You got my hopes up so high then I read the first couple of lines and realised it's for SUVs and Trucks only. Stupid GM not dropping the price on any of their cars. :(
 

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brentil said:
You got my hopes up so high then I read the first couple of lines and realised it's for SUVs and Trucks only. Stupid GM not dropping the price on any of their cars. :(
I was hoping it was across the board when I first saw the article too. Maybe GM will come to its senses on the car end and lower prices there as well.

Last week I saw that they announced they were raising rebates on G6 and LaCrosse sedans due to dissappointing sales. Not a godo sign for a pair of new models. I don't know what MSRP's look like on Lacrosses, but the G6's are a little high at the sticker. They compare price wise to the Grand Prix, and are supposed to be below the Grand Prix in the Pontiac lineup.
 

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Fformula88 said:
I don't know what MSRP's look like on Lacrosses, but the G6's are a little high at the sticker. They compare price wise to the Grand Prix, and are supposed to be below the Grand Prix in the Pontiac lineup.
Yeah, I think GM is caught between a rock and a hard place. The G6 and Grand Prix probably cost about the same to make, so they got to sell them for about the same. They can't raise the price on the Grand Prix because people just won't pay it, and fleets definately won't pay it. So they list about the same and people say "What's up with that?".
 

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AeroDave said:
Yeah, I think GM is caught between a rock and a hard place. The G6 and Grand Prix probably cost about the same to make, so they got to sell them for about the same. They can't raise the price on the Grand Prix because people just won't pay it, and fleets definately won't pay it. So they list about the same and people say "What's up with that?".
With the scheduled demise of the Bonneville, Pontiac could just raise the price of the Grand Prix but I hope they won't. It still is a bargain over a 300C or CTS
 

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Discussion Starter #6
No way GM can rasie the price of the Grand Prix. It is selling well for Pontiac right now, but raise the price and it just won't be competitive with the newer competition. The face lift they gave it has given it some new life, but it still rides on an aging platform with aging engines. Any big price increase is going to have to wait for a redesign.

Instead, I would get rid of the $1000 rebate (maybe its $2000 now) on the G6 and lower the MSRP by a matching amount. Then it looks cheaper than the Grand Prix on the lot (not to mention Accords and Passats which GM targeted) and they will be more likely to get what they want for it.
 
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