DETROIT -- Despite General Motors' rocky introduction of value pricing, the automaker will stick with it when it introduces redesigned full-sized SUVs in January.
The question is: Can GM sell these vehicles without big rebates even as it offers generous incentives on older products? GM CEO Rick Wagoner says GM will continue to discount vehicles nearing the end of their life cycle.
"We've positioned some prices down, others we haven't as much," Wagoner said in a Dec. 8 interview with Automotive News. "It is much easier, when you have a new product, to (offer) a compelling price. That's the time when you like to talk about product anyway, as opposed to the deal."
Early next year, dealers will get a redesigned Chevrolet Tahoe, GMC Yukon, Cadillac Escalade, Chevrolet Suburban, GMC Yukon XL and Cadillac Escalade ESV. Later in the year, the GMC Sierra and Chevrolet Silverado pickups hit showrooms. Saturn also will get several new vehicles.
Value pricing means a lower sticker price on certain base models that is close to the actual transaction price. The transaction price is the average price paid for the vehicle.
GM markets the idea under the tag line Total Value Promise.
Value-priced vehicles carry little or no rebates. Last summer, GM cut sticker prices on 2006 models by an average of $301, or 1.1 percent, from final 2005 model year prices.