GM Korea to cut prices after disappointing sales
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GM Korea, the Korean unit of General Motors, said Tuesday it has cut the prices of mainstay models in an effort to revive lackluster sales. Starting Tuesday, GM Korea revised the prices of its major models — such as the Impala sedan, Trax, and Equinox sport-utility vehicles — by up to 3 million won ($2,700). The company expects its “customer-focused pricing approach” to strengthen the position of those key Chevrolet vehicles in the Korean market, Cesar Toledo, vice president in charge of sales, customer care and aftersales at GM Korea, said in a statement.
“Winning more customers, growing market share and sustaining trust in our brand are all crucial ingredients in building a sustainable GM Korea for the long term,” he said.
GM Korea struggled with weak sales in Korea due to a lack of new models and labor-management disputes over jobs last year.
In the January-November period, GM Korea’s sales fell 12 percent to 420,447 vehicles from 479,058 a year earlier. Sales figures for December are set to be released today.
To drive up sales, the carmaker plans to introduce 15 vehicles into the local market over the next five years. It has launched the U.S.-made Equinox and the upgraded Chevy Spark since June. The Traverse SUV will be the next model to be added to its lineup.
GM holds a 77 percent stake in GM Korea, with the state-run Korea Development Bank and SAIC Motor controlling 17 percent and 6 percent, respectively.
Questions & Answers
Q.What is GM Korea's primary reason for cutting prices on its major models?
What is GM Korea's primary reason for cutting prices on its major models?
GM Korea has cut prices to revive disappointing sales figures. The company aims to win more customers and grow its market share after struggling with weak sales last year.
Q.By how much have the prices of GM Korea's key models been reduced?
By how much have the prices of GM Korea's key models been reduced?
The prices of major models, including the Impala sedan, Trax, and Equinox SUVs, have been revised downwards by up to 3 million won, which is approximately $2,700.
Q.What challenges did GM Korea face last year that contributed to its weak sales performance?
What challenges did GM Korea face last year that contributed to its weak sales performance?
GM Korea struggled with weak sales last year due to a lack of new models being introduced to the market and ongoing labor-management disputes concerning jobs within the company.
Q.What is GM Korea's strategy to improve sales and market position in the long term?
What is GM Korea's strategy to improve sales and market position in the long term?
GM Korea plans to introduce 15 new vehicles into the local market over the next five years. This includes models like the U.S.-made Equinox and the Traverse SUV.