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General Motors Corp. plans to outline a strategy next week to slash sticker prices on most of its 2006 models, a potentially risky departure from its successful employee discount promotion on 2005 models.
While GM is still nailing down the details, it plans to cut the prices on the majority of its 80 cars and trucks. And for some vehicles, GM will not only cut the price, but also add more standard features, according to company officials.
GM is betting it can wean customers from huge discounts by offering a low price and touting the value and quality of its vehicles.
The four-cylinder Pontiac G6, for example, will see a price cut of about $3,000, and the Chevrolet Malibu sedan's sticker price will drop about $1,300, company officials said.
The 2006 Cadillac DTS will be priced more than $5,000 lower than its predecessor, the DeVille.
The retro-styled Chevrolet HHR, making its debut for 2006, has already been priced to compete with the Chrysler PT Cruiser, with a base sticker price at $15,990.
With dealer inventories dwindling from the two-month employee pricing promotion, GM spokesman Jeff Kuhlman said the company intends to end the discounts on 2005 models Monday.
But GM left the door open to extend the promotion if market conditions and other factors warrant it.
While saying GM's "intention" is to end the program Monday as scheduled, Kuhlman said "it is also our intention to be competitive in the marketplace on both 2006 models and 2005 models that remain. What tools we'll provide the dealers after Aug.1 have not yet been decided." http://www.detnews.com/2005/autosinsider/0507/28/A01-262269.htm
While GM is still nailing down the details, it plans to cut the prices on the majority of its 80 cars and trucks. And for some vehicles, GM will not only cut the price, but also add more standard features, according to company officials.
GM is betting it can wean customers from huge discounts by offering a low price and touting the value and quality of its vehicles.
The four-cylinder Pontiac G6, for example, will see a price cut of about $3,000, and the Chevrolet Malibu sedan's sticker price will drop about $1,300, company officials said.
The 2006 Cadillac DTS will be priced more than $5,000 lower than its predecessor, the DeVille.
The retro-styled Chevrolet HHR, making its debut for 2006, has already been priced to compete with the Chrysler PT Cruiser, with a base sticker price at $15,990.
With dealer inventories dwindling from the two-month employee pricing promotion, GM spokesman Jeff Kuhlman said the company intends to end the discounts on 2005 models Monday.
But GM left the door open to extend the promotion if market conditions and other factors warrant it.
While saying GM's "intention" is to end the program Monday as scheduled, Kuhlman said "it is also our intention to be competitive in the marketplace on both 2006 models and 2005 models that remain. What tools we'll provide the dealers after Aug.1 have not yet been decided." http://www.detnews.com/2005/autosinsider/0507/28/A01-262269.htm
