GM raises prices 3.5% for 2009 models, launches 0% sale

[Oracle of Delphi]

Jamie LaReau

Automotive News

June 23, 2008 - 1:45 pm ET

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.

Link: http://www.autonews.com/article/20080623/A...paign_id=alerts

[CSpec]

Wow, Hummer is moving along quickly. Price increases were inevitable, given the price of steel nowadays.

[gmcbob]

Probably not a bad idea to get rid of Hummer. I'll bet the day that happens you'll see a 10% increase in GM's stock price. Actually, I think GM could still do a lot with that brand, but the focus really needs to be on developing very good Civic/Corolla/Yaris/Fit fighters.

[daves87rs]

Probably not a bad idea to get rid of Hummer. I'll bet the day that happens you'll see a 10% increase in GM's stock price. Actually, I think GM could still do a lot with that brand, but the focus really needs to be on developing very good Civic/Corolla/Yaris/Fit fighters.

HUMMER is just an image brand, nothing more.

Lately it has become more trouble than it is worth. If GM wanted a real off road brand, they would have bought Jeep.....

[gm4life]

Ah get rid of it. Hummer can go and needs to go.

[Brougham-Holiday]

I've been saying for months now that GM needs to dump Hummer asap, its a waste of development money and energy. Lets see a world class Cobalt/G5 and a more powerful/fuel efficient Astra.

[GMTruckGuy74]

Wow... 0% for 72 months... that could definitely have me and the wife returning the Envoy for a new 2009 Pontiac Vibe GT (if it's included in the sale) this weekend. The GM Supplier price plus the extra $500 because we're buying over leasing, plus the $1,000 GM Supplier bonus cash, and I think my wife would be eligible for the College Grad $500 bucks (according to the link to the website PCS posted in aother thread, which I need to verify and quickly) - that $2,000 total cash incetive plus the 0% will have us ready to sign on the dotted line ASAP.

[CARBIZ]

We've had this for 6 months. The results are mixed. Don't expect the Vibe to be included. GM needs a targeted, focused marketing campaign, not more giveaways.

[michaelv13]

We've had this for 6 months. The results are mixed. Don't expect the Vibe to be included. GM needs a targeted, focused marketing campaign, not more giveaways.

What bothers me is the knee jerk reactions of the top brass of GM. It just seems that they have lost their foresight completely.

[gmcbob]

And nothing on the Astra? That blows.

If they put 0% for 72 on an Astra, I'd probably go buy one tomorrow and stick my XM radio in it - have a cool 5 door hatchback built by our wonderful friends at GME and call it a day for the next few years (as far as new car buying goes). It's honestly the only fuel efficient car from GM that I think would be really cool to own.

[regfootball]

And nothing on the Astra? That blows.

If they put 0% for 72 on an Astra, I'd probably go buy one tomorrow and stick my XM radio in it - have a cool 5 door hatchback built by our wonderful friends at GME and call it a day for the next few years (as far as new car buying goes). It's honestly the only fuel efficient car from GM that I think would be really cool to own.

yeah, curious that they missed the astra incentives. 0/72 on the astra is an instant no brainer. again it goes to show how they are going out of their way to promote aura and astra is merely a placeholder for now.

HHR though, 0/72 or 2500 cash back

Edited June 25, 2008 by regfootball