When someone pays tax, they generally like to think it’s going to towards something that will benefit society. Maybe it might be a repaired road? Or funding towards a crumbling school? I doubt they would want the money to go towards shifting a supposed CamCord killer or an alleged 3 series rival, but that’s what’s going to happen. BusinessWeek reports that executives at “New” General Motors are going to cut prices and rework adverts to boost flagging sales of the Chevrolet Malibu and the Cadillac CTS; two saloons considered critical to meeting Ed Whitacre’s target of a profitable 2010. That’s right, “New” GM are going to cut prices (A.K.A “Cash on hood”) to make more sales. Sound familiar?
GM’s North American president, Mark Reuss, are hoping that these plans will reduce the excess inventory at dealerships. Inventories were at five months’ supply, more than twice the industry average. “The CTS is going to be fixed, now,” said Mark Reuss. “We’re going to be right on the back of that working on Malibu. We’ve got to have Malibu selling a lot more than we do right now. We’re looking at what we should be doing with the car versus where we’re at.”. Steve Shannon, executive director of marketing at Cadillac said that CTS prices were cut by as much as $3000.
Business Week also reports that 3 people, familiar with Ed Whitacre’s plans, say that one of his criterion is to maintain U.S market share at 20%. However, the 3 people asked not to be named because the plans are not public. The GM CEO and Chairman wasn’t commenting on his plans. So much for transparency at GM.