GM TO CUT PRICES!

January 11, 2006

BY JUSTIN HYDE
FREE PRESS WASHINGTON STAFF

General Motors Corp. will cut the window sticker prices on three-fourths of its models by an average of $1,300 today in an attempt to break the feast-or-famine cycle of huge incentives it has fostered during the past few years.
The new prices will apply to 57 of GM's 76 North American models, which account for about 80% of its volume. All prices for Chevrolet, Buick and GMC models will be lowered, as will some Pontiac and Cadillac vehicles. Saab, Saturn and Hummer prices will not be affected.
GM said Tuesday the move was not an end to rebates or the occasional big promotion, and the changes would have little to no effect on the final price customers actually pay for most GM vehicles. Instead, the program will make what had been increasingly irrelevant sticker prices on GM vehicles -- a key figure for Internet shoppers -- closer to reality.
The moves also will affect all-new models such as the large SUVs rolling out this year that are essential to ending billions of dollars in losses from GM's automotive business.