GM raises prices 3.5%, launches 0% sale
DETROIT -- General Motors told dealers in a teleconference today that it would be launching a 0 percent financing sale starting Tuesday, June 24, while raising prices "across the board" for GM's 2009 models.
GM executives also told dealers that they plan on making some production shifts and that they hired Citibank to help review the Hummer brand's future.
Attempting to boost June sales, GM's Mark LaNeve told dealers in a conference call that GM would be starting what it calls a "72 Hour Sale." The sale starts June 24 and runs through June 30. LaNeve is GM's vice president of vehicle sales, service and marketing.
The sale will offer customers 0 percent interest for 72 months for most Chevrolet and Buick-Pontiac-GMC products, GM told dealers for those brands. As of 1 p.m. EDT, GM had not yet addressed the premium and Saturn dealers.
GM will also offer an additional $500 bonus cash to a customer who purchases a vehicle rather than leasing, say dealers who listened to the conference call.
According to dealers, LaNeve also said that GM would be raising prices on average by 3.5 percent for most 2009 vehicles. Dealers say LaNeve said the price increases would be across the board.
'We all knew' increases were coming
"Some of that is because they're adding more content, but some of it is because commodities are going up and the dollar is weaker," says a dealer who listened to the call, but declined to be named. "We all knew price increases were coming."
Dealers say LaNeve said that GM would be adding a third shift at its plant in Lordstown, Ohio. GM builds the Pontiac G5 and Chevrolet Cobalt compacts at Lordstown. GM will go on maximum overtime at its plants in Orion Township, Mich., and Kansas City, Kan. GM builds the Pontiac G6 and the Chevrolet Malibu mid-sized cars at Orion and builds the Malibu and Saturn Aura at Fairfax.
GM will also increase crossover production, dealers say. GM will add 3,500 GMC Acadias and 7,000 Buick Enclaves to the mix by year-end. GM builds those vehicles at the Lansing Delta plant near Lansing, Mich.
Finally, LaNeve told dealers that GM has hired Citibank to help it complete its study of the Hummer brand. On June 3, GM's CEO Rick Wagoner announced that GM is conducting a strategic review of the Hummer brand and is open to "all options" from revamping the product lineup to a partial or complete sale of the brand.
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Print | posted on Monday, June 23, 2008 3:00 PM