GM to Cut MSRP on Certain Models

DETROIT, June 13, 2005; Reuters reported that General Motors Corp will cut base U.S. sticker prices for some Chevrolet, Pontiac and Saturn brand models in a drive to boost sales, a leading industry trade magazine reported on Monday.

Citing three dealers who it said had been briefed on the automaker's strategy for 2006 models, Automotive News said it was aimed at luring shoppers by advertising lower prices on the Internet.

The move could also help trim costly rebates offered by the world's largest automaker, the weekly magazine said.

GM spokeswoman Deborah Silverman said Mark LaNeve, GM's vice president of vehicle sales, service and marketing, had spoken recently about developing "a pricing strategy that more fully reflects transaction prices."

She declined further comment, however, except to say that prices for GM's 2006 models would be unveiled soon.

Dealers contacted by Reuters said they had heard nothing official about 2006 prices.

GM is battling dwindling market share in North America and had a $1.1 billion first-quarter loss, its worst result since it teetered near bankruptcy in 1992.

The company reduced sticker prices on 22 mid-sized sport utility vehicles in February as a way to get list prices closer to what customers actually pay after discounts.

In a bid to snap a four-month-old losing streak in its U.S. sales, GM also announced on June 1 that it was offering the same vehicle discounts available to its employees to the general public.

The "GM discount for everyone" program, which runs through July 5, includes all 2005 model-year GM cars and trucks except the Chevrolet Corvette and GMC medium-duty trucks.