General Motors' second stab at value pricing is much better than its first try, even though that term is now verboten at GM headquarters.
Last fall, GM reduced its stickers a piddling average of $301. That was not nearly enough, and value pricing flopped.
This time, GM says, the reduction averages $1,300. That's more like it. It gives the General something to crow about.
The downside: GM cut the dealer discount 1 to 3 percentage points. That means dealers are financing about one-half of the price cut; buyers will never see it. It's not a good situation, but it's a start toward the goal of value pricing: sticker prices closer to transaction prices in order to reduce customer rebates.