GM cuts SUV prices

GM cuts SUV prices

Wednesday, February 23, 2005 (Detroit):

In a move not typically seen this time of year, General Motors Corp. has slashed prices on its mid-size sport utility vehicles, which compete in one of the industry's toughest segments and saw sales slump dramatically last month.

GM, the world's largest automaker, has trimmed prices by $1,500 to $2,000 on the Chevrolet TrailBlazer, GMC Envoy and Buick Rainier - vehicles that already carry $2,000 cash rebates.

It comes after a disappointing January in which GM's US business rose 1 per cent from a year ago and its light truck sales - which include SUVs, pickups and minivans - were flat.

But Envoy sales were off 47.8 per cent from January 2004, TrailBlazer sales off 41.9 per cent and Rainier sales down 20.8 per cent, according to the research firm Autodata Corp.

Spokeswoman Deborah Silverman said the decision was made after a routine review of how GM's vehicle pricing compared with competitors in all categories.

"When we looked at our mid-size utilities, we saw several competitive vehicles priced well below GM vehicles," Silverman said. "We made the adjustment to make sure we remain competitive."

Automakers don't normally reduce prices in the middle of a model year, and GM wouldn't provide specifics of the new pricing. (AP)

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