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.