GM Introducing “Red Tag” Incentives
Hoping to boost sales, General Motors Corp. on Monday announced a new discount program of “Red Tag” prices that could knock from several hundred dollars to more than $4,440 off the list price of some of its 2005 and 2006 model cars and light trucks through Jan. 3.
The announcement comes as the world’s largest automaker has been running up billion-dollar losses and reporting a declining North American market share. Its shares, which have been trading at 13-year lows, rose 7 cents to $24.55 in premarket trading.
Under the new incentives, dealers will post fixed maximum prices on most models of the Buick, Chevrolet, GMC and Pontiac nameplates, GM said in a statement.
The GM announcement can be expected to trigger a new round of price cuts across the car industry, even by Asian producers that have been gaining market share at the expense of the U.S. Big Three, said analyst Noriaki Hirakata of Morgan Stanley in Tokyo.
Source: Yahoo! News.
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