GM Cuts Sticker Prices

DETROIT January 10, 2006; GM today announced that it has significantly lowered Manufacturer’s Suggested Retail Prices (MSRPs) on vehicles accounting for about 80 percent of its sales volume. This move covers every Chevrolet, Buick and GMC model, as well as most Pontiac cars and trucks. The new MSRPs are effective Jan. 11. This is the next step in GM’s initiative to simplify pricing and offer consumers the best value in the industry.

Combining this price repositioning with adjustments made to MSRPs at the beginning of the 2006 model year, GM has lowered MSRPs on vehicles representing about 90 percent of its volume.

“This is a big step for us and arguably the biggest price repositioning in our history,” said Mark LaNeve, GM vice president, North America Vehicle Sales, Service and Marketing. “This move is in line with our customers’ desire for simple, compelling prices.”

Under the new pricing structure, MSRPs on many GM vehicles have been lowered, some by as much as $2,500.

LaNeve explained that GM’s aggressive pricing action taken at the beginning of the 2006 model year was effective in the improving sales performance of the new launch products. This action allowed for clearer comparisons to competitive vehicles and pricing simplicity. It also enabled the nearly two-thirds of new vehicle buyers using the internet to research their vehicle purchase and get strong MSRP comparisons. Evidence of the consumer appeal of this approach became apparent when new products like the Chevrolet Impala and HHR, Pontiac Solstice and Cadillac DTS – introduced with very compelling prices - experienced strong sales following their launch.

“Starting right now, we are going to communicate a clear, simple message,” LaNeve added. “In more segments, with more brands, GM has a great product at a great price, and in many cases, we have the best product at the best price. Customers can compare for themselves not only on our own websites, but on Head2Head at Edmunds.com.”

Pricing for much of the Cadillac lineup already is well-positioned. With today’s announcement, CTS and SRX MSRPs also were repositioned. 2007 Escalade pricing will be announced next week.

Among Saturn models, only Relay was repositioned. Saab and HUMMER also are not included in today’s announcement. Vehicles for these brands are competitively priced.

“As we head into 2006, we’re launching 19 new products that represent over 1.5 million vehicle sales,” LaNeve said. “Today’s action allows us to talk more about the features and benefits of all of our vehicles and to spend less time talking about ‘the deal.’”