GMC dealer in Shanghai offering five tons of free gas for Sierra Denali buyers

Article by Christian Andrei, on May 23, 2012

A GMC dealer in Shanghai is offering five tons of free gas as an incentive for buying the new GMC Sierra Denali. While other dealerships typically offer cash rebates or low interest loans, this dealer wanted to entice customers who are feeling the pinch of rising fuel prices in China. Its government has loosened its restrictions, which had kept fuel prices down.

he fuel prices in Beijing and China are approaching the levels in the U.S. This actually isn’t the first time that free gas has been used to raise sales. In the U.S., Chrysler and a few other automakers have made this offer in the past. The Sierra Denali costs about $134,000 so the average worker can’t afford it.

John McElroy, of Autoline Detroit, believes that this is because even the wealthy people are becoming more concerned as well about the increasing fuel costs. What the Shanghai dealer is offering is equivalent to slightly lower than 2,000 gallons of gasoline. There are 2,200 pounds in a metric ton and a gallon of gas is about six pounds.

Using the present prices in Shanghai, this much gas costs about $8,000 at the current exchange rates. While majority of the models that General Motors sells in China is locally produced, the GMC Sierra Denali is an import.

This is why it is priced higher than double what the truck’s price is in the U.S. The China Times said that the first full-size import pickups only started to appear in the Chinese market in 2009.

The publication said further that most of the vehicles sold in China are “man toys” instead of being used for work. This is why the Sierra Denali would need a nudge to increase its sales. Another factor that goes against it is that these trucks can’t pass through many streets in Shanghai and in other cities that are just too narrow.

Topics: gmc, gmc sierra, denali

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