GM Canada Announces Incentives
As reported here, parity between the U.S. greenback and the Canadian loonie has left many Canadian car buyers with a serious case of sticker shock. To rectify the disparity between U.S. and Canadian prices (albeit belatedly and reluctantly and only after a flood of cross-border shopping and probably more for their dealers' benefit than their customers), Chrysler and Porsche recently lowered their prices north of the border. GM is taking a different route, one with which they are no stranger: incentives. GM Canada has announced cash incentives ranging from $1.5k to $10K and a one percent reduction in the GST (Goods and Services Tax) two months before the government is scheduled to lower the tax. The press release doesn't say how long the incentives will remain in effect. Why incentives rather than price reductions? Incentives can be quietly phased out or terminated while raising prices after a few months would draw unwanted attention to the price "adjustment."