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LOS ANGELES -- General Motors has taken the unusual step of quietly lowering sticker prices by up to $2,000 on some of its most popular SUVs after a sudden sales slip.

Earlier this month, GM knocked $1,500 off the manufacturer's suggested retail prices of its midsize SUV lineup -- Chevrolet TrailBlazer, GMC Envoy and Buick Rainier -- and $2,000 off most extended versions.

Among them was the Envoy XUV, with a sliding roof panel, which GM plans to quit making.

Sticker prices also were cut by $750 on two full-size pickups, GMC Sierra and Chevrolet Silverado 1500 regular-cab Fleetside work truck.

GM didn't announce any of the changes. Incentives, which can deduct another $2,000 off the price of the midsize SUVs, were left intact.

"This is part of an effort to remain competitive," says company spokeswoman Deborah Silverman.

GM's midsize SUV segment was battered in January. TrailBlazer sales fell 46% compared with January 2004. Envoy sales were off 52% and Rainier 27%, Autodata reports. By contrast, midsize model sales from all manufacturers fell 24%.

Slipping sales were in contrast to modest sales gains for all of 2004 vs. 2003.

Price cuts in the middle of a model production year are considered "extremely unusual," says Mark McCready, pricing expert for CarsDirect.com, a Web site for auto buyers.

Unlike slapping on more incentives, slashing sticker prices requires changing financing arrangements on the unsold vehicles, he says. And every new SUV, whether on storage lots or in dealer showrooms, has to have a new sticker pasted on the window.

"I think GM has gotten some feedback that shoppers might be taking them off their list even before a test drive because of their sticker prices," McCready says.

Midsize SUVs remain popular, but GM has been hurt by "increasing competition, from the domestics and the Japanese," says Mike Chung, pricing analyst for Edmunds.com, another auto site.

With the price cuts, the most basic TrailBlazer is now priced below Ford Explorer, Dodge Durango, Honda Pilot and Toyota 4Runner. It's still above the new Nissan Pathfinder, though, in the increasingly crowded field.

Rivals aren't worried. "We span such a large price range," says Ford Motor spokesman Dave Reuter about the Explorer.

And given that Chrysler lowered the Durango's price when the new model was brought out two years ago, "We don't feel like we need to do anything" in response to GM, says Chrysler spokesman Kevin McCormick.

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desperado......
 

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Has anybody thought that maybe its cuz of gas prices. i know where im @ it steadily stays over 2.20 i know its at least on the west coast. sidenot i was with my buddy the other day he has an 04 expedition and he put in like 50 bucks i was like whoa thank god i drive a honda. :clap
 

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I think its a great time to buy Gm products... :clap

I love there lines of trucks... great reliability imo.. :clap
 

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HanSOLio said:
Has anybody thought that maybe its cuz of gas prices. i know where im @ it steadily stays over 2.20 i know its at least on the west coast. sidenot i was with my buddy the other day he has an 04 expedition and he put in like 50 bucks i was like whoa thank god i drive a honda. :clap
yeah gas prices from where I live are at about 2.50 for 87 octane. Anyways GM is giving out so many incentives these days and now they lowering the msrp, dam this is ridiculus :kick
 

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hobie237 said:
at least now maybe the grossly overpriced cars will come down a bit...
People don't really get GM's pricing strategy. They hear price cuts and incentives/rebates like $3k to $6k off and think they're getting an excellent deal when infact, the vehicle was overpriced by like 3-6k to begin with.

Example: A loaded 240hp Impala SS costs like 31k. A loaded Honda Accord Ex with the 240hp v6, navigation, and every other option goes for like 28k. People see like $3k rebates on the SS, and think they're getting the buy of their life just because they just saved a whooping 3,000 dollars off the msrp! But all they did was still pay the same amount for an aging and inferior car (impala) as they would a superior newer car like the accord ex v6. Shit, that's no good deal even with the discounts. Most consumers don't notice this cause their either too stupid or blinded by the $3k off rebate advertisment to do the real math. People don't understand GM's whole rebate/pricing game and they probably never will. A lot of their stuff will still be relatively overpriced msrp wise with rebates and such bringing it down to more realistic levels.

So this 700-2000 dollar off doesn't surprise me. Just watch, they'll cut/reduce/scale-back incentives by like 700-1000 dollars in the coming months and so the actual real world price savings will probably be a couple of hundred bucks to perhaps a grand at most, lol :hehe. They say they'll keep incentives/rebate amounts intact, but that'll probably change after a couple of months. If not, no biggy becuase the final product with the price reduction and normal rebates will only be competitively priced at best.
 
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