15 October 2013

Doubling Down on Stoopid

General Motors has boosted prices of its redesigned 2014 full-size pickups $1,500 – enough to pay for a $1,500 rebate currently offered on most models.

"It's the oldest game in the book – raise the price and raise the rebate. It's a marketing message," says Karl Brauer, senior analyst at Kelley Blue Book. Shoppers have come to expect a rebate, and are less attentive to whether the price of the vehicle has gone up commensurately, he says.

The new prices make the least-expensive 2014 GM pickup – a Silverado with two-wheel drive and regular cab -- $26,670 including $1,095 shipping.


The president of GM acknowledged, last week, that sales of its pickup trucks are off some 7 to 9 percent (I forget which), and stated specifically it's because of consumers being angry about the government bail-out at taxpayer expense.

Perhaps someone should tell the mental pygmy that when sales are falling, you don't raise the prices.

Perhaps they deserve to fail.


Well Seasoned Fool said...

They are raising prices to try and keep solvent. Their business model is unsustainable. Much of their "bail out" money was spent to prop up their overseas operations; as though they knew then they just pushed their collapse down the road.

Wholesaler friend of mine says he doesn't know a single GM brand dealer building or expanding their facility in Colorado os SE Wyoming.

Rev. Paul said...

Understood, and it won't work for them any better than it's working for the feds.

drjim said...

And Ford, who didn't take any government money, is selling every pick-up it can bolt together!

Rev. Paul said...

Absolutely, drjim. That's why 3 of our 4 cars & trucks are Fords. (The other one's a fluke.)