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Discussion Starter · #1 ·
President Mark Reuss says the automaker does not want to turn off prospective buyers by pricing its EVs too high.

This article is from INSIDE EVs

By: Dan Mihalascu

GM executives say the automaker is determined to avoid "opportunistic" pricing of its upcoming electric vehicles, going for a long-term approach and a lineup spanning segments and price points.

The company does not want to turn off prospective buyers by pricing its EVs too high, President Mark Reuss said earlier this month at the company's investor day in New York City, Automotive News reports. General Motors is hoping that customers will be switching from gasoline-powered cars to EVs as it prepares to launch more models next year and make Cadillac and Buick all-electric by 2030.
While research shows that consumers are willing to pay a premium for EVs—at least for now—GM will target similar prices to ICE vehicles. Reuss said GM's job is to offer "really good vehicles at appropriate segment pricing that doesn't cost anybody any more money than what they were paying to go into an ICE segment."
"It's our job to deliver the commercial value, to be able to do that at margins that were similar — or in some cases above — what we did on an ICE vehicle. ... Being opportunistic or episodic with pricing is not what we're doing here. We're in the long game, and we're going to create customers for life."
MY24_Chevy_EquinoxEV_1LTMY24_Chevy_EquinoxEV_3RSMY24 Chevrolet Equinox EV 3LTMY24_Chevy_EquinoxEV_1LT - 2MY24_Chevy_EquinoxEV_3RS - 2MY24_Chevy_EquinoxEV_1LT - 3MY24 Chevrolet Equinox EV 3LT - 3
This sounds reassuring, and GM has more good news for prospective buyers of its EVs. CFO Paul Jacobson told investors the automaker will also keep an eye on reservations to avoid having to raise prices on consumers waiting in line. This explains why the company only collected reservations for one model year of the Cadillac Lyriq, even though demand existed for more—it couldn't predict the cost to build a 2024 model-year vehicle.
"We weren't going to make the mistake that others have, where we're going to go and have to change prices on somebody who's already ordered a vehicle."
Jacobson did not name names, but he was probably referring to Rivian, which had to backtrack on price increases for the R1T and R1S that it initially planned to charge existing reservation holders. Another example would be Ford Motor Company, which has raised the starting price of the F-150 Lightning twice since August on rising material costs and supply chain issues.
“We'd rather take the risk that the orders dry up or customers suddenly run away from EV transformation rather than put ourselves in a position where we're exposing the customer to our incapability to manage the production costs of the business."
GM CEO Mary Barra told investors this month that models like the Cadillac Lyriq, Chevrolet Equinox EV, Blazer EV, Silverado EV,
Wheel Tire Car Automotive parking light Land vehicle

and GM Sierra EV are "core and critical to our EV growth strategy through 2025." With the exception of the Lyriq, which is already available, all these Ultium-based vehicles are going on sale next year.
 

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The question then becomes how will GM avoid it's dealers doing what Ford's did, marking up the Lightning by tens of thousands of dollars?
 

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President Mark Reuss says the automaker does not want to turn off prospective buyers by pricing its EVs too high.

This article is from INSIDE EVs

By: Dan Mihalascu

GM executives say the automaker is determined to avoid "opportunistic" pricing of its upcoming electric vehicles, going for a long-term approach and a lineup spanning segments and price points.

The company does not want to turn off prospective buyers by pricing its EVs too high, President Mark Reuss said earlier this month at the company's investor day in New York City, Automotive News reports. General Motors is hoping that customers will be switching from gasoline-powered cars to EVs as it prepares to launch more models next year and make Cadillac and Buick all-electric by 2030.
While research shows that consumers are willing to pay a premium for EVs—at least for now—GM will target similar prices to ICE vehicles. Reuss said GM's job is to offer "really good vehicles at appropriate segment pricing that doesn't cost anybody any more money than what they were paying to go into an ICE segment."

MY24_Chevy_EquinoxEV_1LTMY24_Chevy_EquinoxEV_3RSMY24 Chevrolet Equinox EV 3LTMY24_Chevy_EquinoxEV_1LT - 2MY24_Chevy_EquinoxEV_3RS - 2MY24_Chevy_EquinoxEV_1LT - 3MY24 Chevrolet Equinox EV 3LT - 3
This sounds reassuring, and GM has more good news for prospective buyers of its EVs. CFO Paul Jacobson told investors the automaker will also keep an eye on reservations to avoid having to raise prices on consumers waiting in line. This explains why the company only collected reservations for one model year of the Cadillac Lyriq, even though demand existed for more—it couldn't predict the cost to build a 2024 model-year vehicle.

Jacobson did not name names, but he was probably referring to Rivian, which had to backtrack on price increases for the R1T and R1S that it initially planned to charge existing reservation holders. Another example would be Ford Motor Company, which has raised the starting price of the F-150 Lightning twice since August on rising material costs and supply chain issues.

GM CEO Mary Barra told investors this month that models like the Cadillac Lyriq, Chevrolet Equinox EV, Blazer EV, Silverado EV, View attachment 225
and GM Sierra EV are "core and critical to our EV growth strategy through 2025." With the exception of the Lyriq, which is already available, all these Ultium-based vehicles are going on sale next year.
That sounds promising. Maybe I'll be able to afford the 2LT with AWD after all? Or who knows, maybe even the 3LT with AWD... A guy can only dream.

I just really hope they'll deliver on those words, because we all know words are cheap. But it's the first time I've seen any make release these kind of statements, so that's a step in the right direction.

We don't get "dealer markups" here in Canada, we do get people buying the entire inventory and then selling it with a huge margin (I'm talking 50%-100%).

I think manufacturers should do what supermarkets did with toilet paper when there was a shortage... 1 per person, and they should add a $10,000 deposit check (sitting n the drawer), that will be given back in one year's time (clock starts after delivery) if the owner of vehicle is still the owner at the 1-year mark. They can call it a "loyalty discount" or something. Anything to get scumbags from ruining it for the rest of us.
 

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Discussion Starter · #5 ·
That sounds promising. Maybe I'll be able to afford the 2LT with AWD after all? Or who knows, maybe even the 3LT with AWD... A guy can only dream.

I just really hope they'll deliver on those words, because we all know words are cheap. But it's the first time I've seen any make release these kind of statements, so that's a step in the right direction.

We don't get "dealer markups" here in Canada, we do get people buying the entire inventory and then selling it with a huge margin (I'm talking 50%-100%).

I think manufacturers should do what supermarkets did with toilet paper when there was a shortage... 1 per person, and they should add a $10,000 deposit check (sitting n the drawer), that will be given back in one year's time (the clock starts after delivery) if the owner of the vehicle is still the owner at the 1-year mark. They can call it a "loyalty discount" or something. Anything to get scumbags from ruining it for the rest of us.
We don't get "dealer markups" here in Canada, we do get people buying the entire inventory and then selling it with a huge margin (I'm talking 50%-100%).
Wow, and I was thinking of moving to BC, not! lol. Whoever is allowed to buy an entire allotment should only wear a shirt with the letter A on it for a**h**e.
 

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We don't get "dealer markups" here in Canada, we do get people buying the entire inventory and then selling it with a huge margin (I'm talking 50%-100%).
Wow, and I was thinking of moving to BC, not! lol. Whoever is allowed to buy an entire allotment should only wear a shirt with the letter A on it for a**h**e.
It's usually "independent dealers"... Like those who mostly sell used cars.
 

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Bottom line - you walk into a dealership and put down a deposit/holding fee for some future XXX vehicle, you know damn well (at that time and place) exactly what Ford, Chevy, Toyota, etc., are asking for XXX vehicle. Because you read the manufactures list price right off the manufacturer's website. So one of the main reasons your visiting a dealership early is because you believe you know the XXX vehicle you want at the stated manufacturer's list price. Once you hand over your order reservation deposit ($) to Mr. Dealership there should be some "consumer protection law" that kicks in that says neither car manufacturer nor dealer offering XXX vehicle can raise XXX vehicle prices on customers who have already agreed upon purchase price with a good faith cash deposit.

Seriously are we supposed to play the game writing a deposit in early 2023 and then find out in late 2023 or early 2024 what we thought we were buying for say $33,000 has now been raised to say $38,000. So much for good faith negotiations and a handshake. It sure all seems like a "con" game to me.
 

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Bottom line - you walk into a dealership and put down a deposit/holding fee for some future XXX vehicle, you know damn well (at that time and place) exactly what Ford, Chevy, Toyota, etc., are asking for XXX vehicle. Because you read the manufactures list price right off the manufacturer's website. So one of the main reasons your visiting a dealership early is because you believe you know the XXX vehicle you want at the stated manufacturer's list price. Once you hand over your order reservation deposit ($) to Mr. Dealership there should be some "consumer protection law" that kicks in that says neither car manufacturer nor dealer offering XXX vehicle can raise XXX vehicle prices on customers who have already agreed upon purchase price with a good faith cash deposit.

Seriously are we supposed to play the game writing a deposit in early 2023 and then find out in late 2023 or early 2024 what we thought we were buying for say $33,000 has now been raised to say $38,000. So much for good faith negotiations and a handshake. It sure all seems like a "con" game to me.

The deposit (the real one, not the wait-list I'm on) includes the final price... It's a deposit for an agreed upon price. My friend who put a deposit for a 2021 BRZ, got a 2022 BRZ for 0 extra dollars because he already put a deposit for a BRZ, so the dealership had to deliver a brand new BRZ for that price. Because they were 14 months late, they gave him the next model year.

The second hand dealers in Canada DO get it for MSRP, they turn around and sell it for more... These are not dealerships. That's why I'm on the waiting list, to beat them from buying the entire inventory.
 

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Discussion Starter · #9 ·
The deposit (the real one, not the wait list I'm on) includes the final price... It's a deposit for an agreed-upon price. My friend who put in a deposit for a 2021 BRZ, got a 2022 BRZ for 0 extra dollars because he already put in a deposit for a BRZ, so the dealership had to deliver a brand new BRZ for that price. Because they were 14 months late, they gave him the next model year.

The second-hand dealers in Canada DO get it for MSRP, they turn around and sell it for more... These are not dealerships. That's why I'm on the waiting list, to beat them from buying the entire inventory.
I believe Ford wanted its dealers to follow Tesla's online buying strategy as they know dealers play all types of games. Farley might have dug a hole for himself as the national dealer association or whatever it's called fought back.
 
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