GM assures Wall Street of pricing discipline amidst discounts

Article by Anita Panait, on March 10, 2014

General Motors has assured Wall Street analysts that it remained focused on maintaining pricing "discipline” for its full-size pickups despite offering discounts over the last month. GM sent its new chief financial officer, Chuck Stevens, New York to update Wall Street analysts on the carmaker's financial outlook, including the performance of its full-size pickups.

He gave assurance that GM will the prices at premium especially on the profitable full-size pickups. GM is "working on marketing strategies to gain traction at the lower end of the (pickup) market without giving up pricing gains at the high end," remarked UBS Securities in a client note. Analysts, however, reacted cautiously to the message and observed that GM only disclosed few details about recent incentives. Just last week, GM sent a letter to dealers, detailing plans for March sales promotions at Chevrolet, describing it as an "unprecedented promotional assault."

New data on February sales incentives, released to Reuters by two industry research firms, indicates increasing discounts on GM trucks. According to Autodata, the average per-vehicle discounts on the 2014 Chevrolet Silverado pickup leaped over $500 from $3,715 in January to $4,218 in February.

GM posted a 12-percent year-on-year drop in Silverado sales in February as Chevrolet saw its share of the full-size truck segment dive over three percentage points to 22.5 percent.  On the other hand, Ford Motor Co. cut discounts in February on its F-series pickups to $2,835, but still posted almost 3-percent rise in year-on-year sales and commanded over 34 percent of the segment. Ford is planning launch a redesigned F-150 late this year. [source: Reuters]

If you liked the article, share on:

Topics: gm

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 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