By on February 2, 2015

2015 Chevrolet Cruze

Looking for a new Cruze, LaCrosse or Terrain? You might have a bit more money left thanks to some undercutting by General Motors.

CarsDirect reports GM has dropped the base MSRP on a handful of models by as much as $2,750. As a result, some of those models are lower in price than their competitors. The aforementioned GMC Terrain gained the greatest undercut, falling $4,030 under the Ford Edge with the crossover’s new base of $24,070.

However, to be able to undercut the competition without removing key features, GM has sliced dealer margins on the cheapest trims, such as the Terrain SL, Buick LaCrosse 1SV, and the newly introduced Chevrolet Cruze L. Profit margins on such vehicles being as thin as they are already — the difference between MSRP and invoice on the Cruze LS is $600, but only $81 on the L — the economy models may see or are seeing now incentive inclusions.

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22 Comments on “General Motors Undercuts Competition With Lower Starting Prices...”


  • avatar
    DeadWeight

    Yeah, but how much for those 240 day, stale, dealer inventory glut-load of Cadillac ATSs & CTSs, Johan?

    And don’t talk about $3,000 discounts, Zohan. Let’s START the negotiations at 30% off MSRP.

    • 0 avatar
      jjster6

      Doesn’t all that rage eat at your soul DW?

      • 0 avatar
        DeadWeight

        I have no rage.

        I feel sorry for those laid off from the GM Lansing Assembly Plant due to the incredibly poor quality, incredibly overpriced product being planned & implemented by Cadillac management, though.

        Those laid off workers have the right to demand answers from Johan the Zohan & Millennial CT-Lee.

        • 0 avatar
          jjster6

          So your going to blame the guy who’s been on the job 6 months? It took Toyota 25 years to fully wipe the floor with GM. Give him a chance and at least a product cycle under his belt.
          So some stupid things may have been said, but let’s see a CT6 before you rage on (and I’m sure Toyota management says some stupid things too). Yes, GM has made a boat load of mistakes. And they paid for it with market share going form 50 – 18%. But they have also turned around a lot things lately. The problems won’t be fixed in a year, but give so credit for moving the needle.

          • 0 avatar
            Richard Chen

            This. The former head of Cadillac is still at GM:

            http://www.gm.com/company/corporate-officers/robert-ferguson

          • 0 avatar
            28-Cars-Later

            Although I share your general thoughts on overall GM, I think the rage against Cadillac is fully justified due to the absolute ridiculous level of stupidity coming from the marque.

          • 0 avatar
            dbar1

            He’s just mad hes still driving his mom’s ’80 diesel olds ;)

        • 0 avatar
          dbar1

          You mean the Car that won MT COTY? You mean the car that curb stomps BMW? You mean the car that 4x cheaper to maintain than any German competitor? I guess…

  • avatar
    psarhjinian

    GM really needs to get into the habit of setting the price low to start, rather than dropping it later into the year/lifecycle and damaging resale.

  • avatar

    I presume this will also mean less rebates on said cars. Cutting the dealer profit will hurt sales because people simply won’t believe there is that little markup. It’s a good direction to head for those who don’t believe dealerships should make profits, but I don’t honestly believe MSRP is what drives people into doors these days.

    I just got a base Ford Fiesta at D-plan, it was like $500 less than MSRP, basically invoice – holdback. Try convincing a customer that they are getting a great deal when you knock off only $300 bucks.

  • avatar
    nickoo

    Its about time, now do the rest of the lineup. Gm pricing had been much too aspirational across the board.

  • avatar
    Erikstrawn

    “Uh oh, we’re losing market share.”

    “Quick, lower the prices!”

    “But then we’re selling them at a loss.”

    “Don’t worry, we’ll make it up in volume!”

  • avatar
    CoreyDL

    First thought: The new Cruze grille don’t work for nobody at all. And does this count as a new model or a refresh? Cause other than grille I don’t see any changes at the front.

    Second thought: “The aforementioned GMC Terrain gained the greatest undercut, falling $4,030 under the Ford Edge with the crossover’s new base of $24,070.”

    That’s about where it should be, because I’m taking Edge any day of the week. The Terrain is old and overpriced, and RIDIC priced at higher trims. The 6cyl is even an -optional extra- on the Denali version.

  • avatar
    gasser

    How can a dealer stay in business with $81 margin on the Cruze L?????
    I guess GM is making its money on the financing like many subprime lenders. Not long before Cruze will offer the BHPH option.

    • 0 avatar
      sunridge place

      Jeez. You act like the dealers didn’t have a say in this…umm the dealers will stock about 2 of these units and advertise the hell out of them. Their other 30 plus units will be normal margins. This is all about online consideration and advertising around a couple vehicles.

      • 0 avatar

        Yeah, money is in the options. When I got my Fiesta S, I had to locate it 148 miles away, as that was the closest manual hatch. No one wants a car on our lot that we can only discount $50. American customers aren’t trained to look at car values, so much as they are step discounts.

  • avatar
    TW5

    I wish more manufacturers would use this model. Seems like only GM and Nissan are willing to break the oligopoly pricing racket.

    Let well-built cars mature. Reduce the price. Spend the development budget on powertrain upgrades, reliability, and aero tweaks. Better yet, put a BAS mild-hybrid system and CVT on the 1.8L engine, and see if Cruze will make 40mpg combined for the cost of a base-trim Civic.

    I know the average sod wants to spend his money on technological frills, but oil price volatility is going to steer development spending towards the powertrain.

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