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GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars

Buick lowering base prices on Regal, Verano

Buick might have two new options for buyers in the market for an inexpensive luxury sedan. In a move similar to the introduction of the LaCrosse 1SV base trim a few months ago, the brand is ready to offer cheaper, entry-level versions of the Regal and Verano. Like the LaCrosse 1SV, the Verano 1SV mostly cuts dealer margins to reduce the cost for customers. The small sedan is priced at $21,065, plus $925 destination, which is a significant $2,315 drop compared to the next higher trim. The powertrain is still a 2.4-liter four-cylinder making 180 horsepower and 171 pound-feet of torque and a six-speed automatic, but buyers lose out on satellite radio. According to CarsDirect, dealers are making just $106 on this model, versus $935 on the higher grade. Meanwhile, the Regal 1SV charts a slightly different path to a lower price. The trim starts at $27,065, which is a $2,925 savings over the next trim. Buyers still get leather seats too, but the powertrain here is a 2.4-liter four-cylinder without eAssist that makes 182 hp and 172 lb-ft of torque and a six-speed automatic. That's a 77 hp deficit compared to the turbocharged Regal, and combined city/highway fuel economy dips to 23 miles per gallon combined, compared to 24 mpg with forced induction. Buick is introducing the 1SV models in hopes of grabbing more attention for the brand. "We added this new base level to some models as a means of expanding the opportunity for more customers to experience Buick vehicles. The addition of these trims will create an increased awareness and consideration of these vehicles when being compared to the competition," said company spokesperson Nick Richards to Autoblog. However, you might not see many of these inexpensive Buicks on the road. "On the Verano, we suspect dealers will opt to stay away from a car with around $100 between invoice and MSRP - that's the pattern we've been seeing on the LaCrosse 1SV, which is practically impossible to find," said CarsDirect Senior Pricing Analyst Alex Bernstein to Autoblog. Also, the Regal 1SV's switch to a less powerful, naturally aspirated engine "could be a turn-off for some shoppers," he said. Related Video:

GM won't really kill off the Chevy Volt and Cadillac CT6, will it?

General Motors is apparently considering killing off six slow-selling models by 2020, according to Reuters. But is that really likely? The news is mentioned in a story where UAW president Dennis Williams notes that slumping US car sales could threaten jobs at low-volume factories. Still, we're skeptical that GM is really serious about killing those cars. Reuters specifically calls out the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala, Chevrolet Sonic, and the Chevrolet Volt. Most of these have been redesigned or refreshed within the past few model years. Four - the LaCrosse, Impala, CT6, and Volt - are built in the Hamtramck factory in Detroit. That plant has made only 35,000 cars this year - down 32 percent from 2016. A typical GM plant builds 200,000-300,000 vehicles a year. Of all the cars Williams listed, killing the XTS, Impala, and Sonic make the most sense. They're older and don't sell particularly well. On the other hand, axing the other three seems like an odd move. It would leave Buick and Cadillac without flagship sedans, at least until the rumored Cadillac CT8 arrives. The CT6 was a big investment for GM and backing out after just a few years would be a huge loss. It also uses GM's latest and best materials and technology, making us even more skeptical. The Volt is a hugely important car for Chevrolet, and supplementing it with a crossover makes more sense than replacing it with one. Offering one model with a range of powertrain variants like the Hyundai Ioniq and Toyota Prius might be another route GM could take. All six of these vehicles are sedans, Yes, crossover sales are booming, but there's still a huge market for cars. Backing away from these would be essentially giving up sales to competitors from around the globe. The UAW might simply be publicly pushing GM to move crossover production to Hamtramck to avoid closing the plant and laying off workers. Sales of passenger cars are down across both GM and the industry. Consolidating production in other plants and closing Hamtramck rather than having a single facility focus on sedans might make more sense from a business perspective. GM is also trying to reduce its unsold inventory, meaning current production may be slowed or halted while current cars move into customer hands. There's a lot of politics that goes into building a car. GM wants to do what makes the most sense from a business perspective, while the UAW doesn't workers to lose their jobs when a factory closes.