DETROIT -- General Motors' dealers are concerned with whether the automaker can execute its new pricing strategy successfully.
The pricing plan, announced last week at the Detroit auto show, lowers sticker prices an average of $1,300 per vehicle across 80 percent of GM's lineup. Mark LaNeve, GM's vice president of vehicle sales, service and marketing, says the cuts won't affect dealer profits significantly.
The greater concern among dealers is that the automaker will not be able to market the strategy successfully.
Late last year, GM allocated nearly $300 million to push its "Total Value Promise" campaign to explain its new pricing strategy of trimming sticker prices to bring them closer to transaction prices. But the slogan never took hold, LaNeve says.
He says GM launched Total Value Promise at the wrong time -- amid soaring gasoline prices and in the wake of Hurricane Katrina.