Time To Buy GM?

If you’re in the market for a new car, GM’s woes might be your gain.

General Motors Corp., whose U.S. sales fell 4.3 percent last year, said it will cut the prices on about 80 percent of its cars and trucks.

Prices will reduced on all Buick, Chevrolet and GMC models and most Pontiac vehicles, said Mark LaNeve, GM’s head of North American marketing, in a statement today. The price cuts take effect tomorrow. Combined with reductions made on some models in August, the changes cover 90 percent of GM’s volume, LaNeve said.

The firesale isn’t just a ploy to gain sales in what is normally a lackluster season for car buying. GM’s CFO says he’s in crisis mode.

“You can’t panic. That is not crisis mode. Crisis mode means taking serious action, decisively, quickly and addressing your problems as urgently as you possibly can. So I think I understand crisis mode and I am in it and have been for a while,” Henderson said.

He’s right, and hopefully, for GM’s sake, their strategy will work.

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