GM Raises Prices to Boost Falling Pick-Up Truck Sales?

by Karl Utermohlen | October 16, 2013 2:03 pm

General Motors (GM[1]) is looking to bounce back after its pickup truck sales fell 8% in September by raising the prices of its pickups.

The Associated Press reports[2] that the base price for the GM’s 2014 Chevrolet Silverado will go up by $2,085 — from $24,585 to $26,670 — in an attempt to boost sales. The 8.5% increase in price could seem like an odd way to sell more cars but this move could be a ploy to raise the market price so dealers can sell GM pickups at a discount.

The move could help GM bounce back after a tough September that saw the company’s sales go down and its competitor’s sales go up. Ford’s (F[3]) F-Series rose 10% last month and Chrysler’s Ram sales increased by 10%.

Endnotes:
  1. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  2. The Associated Press reports: http://hosted.ap.org/dynamic/stories/U/US_GM_PICKUP_TRUCK_PRICES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-10-16-09-46-13
  3. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F

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