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GM ANNOUNCES 1994 PRICES

 DETROIT, July 13 /PRNewswire/ -- General Motors (NYSE: GM) is accelerating its aggressive marketing efforts in North America as it heads into the second half of 1993, expanding its "Value Pricing" concept for 1994 models, top GM North American Operations (NAO) officials said today.
 The continuation of this successful concept is a major contributor to GM's pricing strategy for 1994, which increases prices only 1.5 percent on the average comparably equipped passenger car and 2.2 percent on the average comparably equipped truck.
 The average price increase for all 1994 GM vehicles is just 1.8 percent -- about half the rate of inflation. The vehicle pricing announcement does not include the Saturn Corporation.
 GM's marketing strategy and its successful results were reviewed for automotive media and financial analysts at a mid-year briefing led by J. Michael Losh, GM vice president and group executive of Vehicle Sales, Service, and Marketing for NAO.
 Losh said specific pricing details will be provided by the individual divisions. He said prices on some 1994 models will not be announced until closer to introduction. However, the prices of those vehicles were factored into today's pricing announcement.
 Losh said that the "Value Pricing" concept, which was initiated with the 1993 model year has been a major impetus behind the marketplace resurgence of GM vehicles.
 "Value Pricing," he said, "means enhancing product value by increasing levels of both safety and popular convenience equipment, along with higher levels of quality and ownership experience at an affordable price."
 Losh added that the Oldsmobile Division had brought a new meaning to the term "Value Pricing," through the introduction of special edition models with certain levels of optional equipment at specific prices, a strategy that was also used at both Buick and Chevrolet.
 "That kind of value pricing will continue and be expanded on in 1994," Losh said. "When you consider our price increases as a percentage of final prices for the 1993 model year -- a year when our interim price changes actually resulted in an overall net price reduction -- this increase is extremely modest." Losh pointed out that during the 1991-93 time frame, the Japanese importers had increased their prices at twice the rate of General Motors.
 Losh challenged the media to reject the "easy" but misleading comparison of "base vehicle to base vehicle" prices from year to year because "that method does not compare vehicles equipped the way most customers really purchase them in the marketplace," Losh said.
 He said GM believes that the average increase of just $290 on passenger cars and only $445 on trucks sends a clear message to potential buyers of 1994 products. The message he said is, "we want you in the GM family."
 Losh attributed GM's pricing strategy to the company's success in lowering its operating costs, continued improvements in productivity, and expected increases in sales volume. He said the 1994 pricing action allows for partial recovery of costs associated with meeting government regulations and increases in other significant areas such as health care.
 In addition to the several all-new cars and trucks and a long list of product improvements being introduced in 1994, anti-lock brakes will be standard on all but a very few GM produced cars and trucks and driver side or dual air bags will be standard on 29 of 33 model passenger car models.
 Reporting on GM's marketing results, Losh stressed that GM is profitably meeting and exceeding its sales goals which include the strategic reduction of sales to daily rental fleets while at the same time increasing more profitable sales to retail customers. Losh said that GM retail sales for the year were up over 10 percent and have more than offset the declines in daily rental fleet volume. Losh indicated that sales volume to daily rental fleets would likely decline further during the 1994 model year.
 "The strategic management of this program and the commitment of our vehicle divisions to implement this strategy has enabled us to increase our sales and contribute significantly in the effort to return NAO to profitability," Losh said.
 Losh reported that for the first six months of 1993, GM's total U.S. vehicle sales of 2,427,156 units represent nearly a 5.0 percent increase over the same period in 1992 and include sales of almost 900,000 trucks -- an all-time record for the company.
 Other mid-year marketing highlights include:
 -- Accelerating production plans and adding shifts at several GM plants to meet demand for a number of "hot" selling models. Plants most impacted include: Oshawa Truck; Saturn; Lordstown; Fairfax.
 -- "Sold out" conditions for some vehicles such as Chevrolet and GMC Suburbans, Blazer, Yukon, and extended C/K pickup trucks -- outperforming production capacity.
 -- New 1993 Chevrolet Camaro and Pontiac Firebirds literally leave GM dealerships as quickly as they arrive.
 -- Record sales of Pontiac Grand Am.
 -- Sales of more than 146,000 Chevrolet Cavaliers in 1993 represents a year-to-year increase of 26 percent and places Cavalier in 3rd position just 3,000 units behind Toyota Camry and almost 14,000 units ahead of 4th place Honda Accord.
 -- Chevrolet Lumina consistently outselling all Chrysler L/H cars (Eagle Vision, Dodge Intrepid, and Chrysler Concord combined!). Buick LeSabre accomplishes the same feat during second quarter.
 -- The all-new Cadillac Fleetwood has more than doubled the sales performance of the model it replaced.
 -- Outstanding sales success of Oldsmobile's "special edition" models offering extraordinary values on most of its car line models.
 -- The GM Card, another new marketing vehicle for General Motors, establishes records in the credit card industry opening 6 million accounts in the first nine months. More than 35,000 cars and trucks sold using savings credits through June 1993.
 -- According to studies conducted by J.D. Power & Assoc., GM was the most improved manufacturer in 1993 Initial Product Quality and was the best rated manufacturer for Sales Satisfaction.
 "We're getting higher marks in quality and higher ratings in both sales satisfaction and customer satisfaction indexes," Losh said. "And we're seeing payoff on the showroom floor."
 NOTE: Pricing information regarding specific 1994 models will be released by individual GM Car and Truck Divisions.
 -0- 7/13/93
 /CONTACT: John Maciarz of General Motors, 313-556-2030/
 (GM)


CO: General Motors ST: Michigan IN: AUT SU:

982 07-13-93 14:01 EDT KE -- DE008 -- 0951 07/13/93 14:05 EDT
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Date:Jul 13, 1993
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