GM Cuts Prices And Slashes Dealer Margin               

GM's Steve Kiefer At Automotive News World Congress

General Motors may be approaching 10 million in sales annually, but the automaker is reportedly slashing base prices for four different models, the Buick LaCrosse, GMC Terrain, Chevrolet Equinox and Chevrolet Cruze.

The Buick LaCrosse has received the biggest discount of $2,570, bringing the entry point down to $31,065, according to a CarsDirect summary of the changes.

The GMC Terrain sticker has been cut by $2,490 to $24,070 — $4,000 below the Ford Edge — while the base Chevrolet Equinox now commands $22,120, a $2,400 discount.

The Chevrolet Cruze has also been included in the campaign, with a savings of $1,575 that brings the MSRP down to $16,170.

In an email to The Detroit News,  Chevrolet spokeswoman Annalisa Bluhm said the Cruz and Equinox are both in critical segments. “Compact car is the third-largest segment in the U.S., and compact SUV is the fastest-growing and largest vehicle segment in the U.S. Both L trim-level options give us a great chance to introduce the brand to new customers with competitive products featuring unexpected features.”

GM appears to be expecting dealers to share the pain, with significant narrowing of margins between the MSRP and invoice pricing, according to the report. For example, the basic LaCrosse now has a gap of just $150 — down from almost $1,350.

So when you go in to get that LaCrosse and expect the dealer to knock a couple of thousand dollars off the price, understand why he can’t do that.

Photo Credit: GM

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