GM’s US sales chief talks about impact of incentives on January sales increase

Article by Christian A., on February 8, 2011

General Motors Co. posted a 22% increase in January sales, prompting questions on whether its sudden increase in incentive spending had something to do with the results. GM U.S. sales chief Don Johnson responded to this observation during a recent conference call with analysts and reporters. Edmunds.com said that GM's incentive spending in January increased by 29% from a year earlier, to $3,762 per vehicle.

In the statement, Jessica Caldwell, Edmunds director of industry analysis, said that this is the highest per-vehicle figure among the six largest automakers.

She said that the surge “raises some eyebrows.” She also noted that GM increased its incentives even if it is selling more redesigned and refreshed models compared to rivals. Johnson admitted that it had a “modest” increase in incentive spending in January, which he says is because the company wanted to “get a head start” with sales.

He also said that he was surprised by its rivals’ decision not to follow GM and instead, cut incentives. He said that dealers and others in the industry have been closely watching incentive spending because they are worried that carmakers will go back to the “push” strategy of pushing too many cars onto dealer lots and moving them through profit-eroding discounts. GM and other automakers have made promises not to make use of these strategies again. [via autonews - sub. required]

Topics: gm, sales, united states

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries