| Incentives of up to $2,000 are to be offered
by Detroit based carmaker GM on many of its cars as part of a drive to
improve sales.
The “Red Tag” incentives will last until 2 January, and the
company claims that the new scheme does not go against previous pledges
to avoid using discounts.
"See some red, save some
green" is the tagline that GM is running alongside the promotions |
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The “Red Tags” will be available on Chevrolet, Pontiac, Buick,
GMC and Saturn vehicles, but excludes its Cadillac, Hummer and Saab. Instead
of having specific discounts per vehicle, cash will be given to dealers
who decide which vehicles will be discounted and by what amount.
GM says that discounts and other incentives have come down since last
year, and are now on average $600 per vehicle lower. January-October sales
were also lower than the same period last year – by 9.4 per cent.
Back in January, GM sought to avoid the problems that companies face when
using discounts as there is the danger that increased sales in one period
will result in consumer apathy later on and a perceived devaluation of
the vehicles’ overall worth. Instead, the company replaced special
offers with a “value-pricing” policy that lowered prices all
round.
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