GM Slashes Prices on 40 Models in China
In what could be considered a somewhat reactionary move, General Motors has slashed the prices of as many as 40 different Buick, Chevy, and Cadillac vehicles. The move is likely intended to promote consumer interest after April sales fell less than half a percent from the year prior.
Price cuts range from 10,000 yuan ($1,613) to 53,900 yuan ($8,694). The reduced prices are said to be indicative of a larger pattern of lower prices, which GM wagers will help along its overall sales growth and keep brands such as Buick and Chevrolet competitive against domestic offerings.
“Through the price adjustment, the selected products will consolidate their leading position in different segments, making them more attractive to consumers,” a spokeswoman for GM in China told The Wall Street Journal.
Other foreign automakers have taken similar measures in the last few months, likely a means to help retain market shares in leaner months where industry growth appears to have slowed from the year prior.
At Auto Shanghai 2015 last month, GM CEO Mary Barra said that it is anticipating annual market growth between 6% and 7% through 2019.