GM falls as media reports on President's Day sale
NEW YORK (AP) — Shares of General Motors Co. dipped Monday as some media outlets took a look at the auto maker's President's Day sale.
On Friday The Wall Street Journal said that GM was giving discounts of up to $7,000 off the list price of its 2014 Chevrolet Silverado and GM Sierra pickup trucks as part of its holiday promotion. The article also said that the company was offering up to a $7,000 discount on a Chevrolet double-cab, six-cylinder All Star edition and the GMC 2014 Sierra 1500 double-cab.
Other media outlets including Reuters, Automotive News, and Edmunds also reported on GM's President's Day sale.
GM spokesman Jim Cain said Monday that discounts given during the President's Day sale will vary depending on the vehicle and the dealership. He said that bigger discounts were being offered on the V-6 models of the Silverado to help build consumer awareness.
Cain said the Detroit company was trying to generate sales and be competitive.
That comes as auto sales overall declined 3 percent in January as frigid temperatures in much of the country kept buyers at home instead of venturing out to car dealers. It was the first year-over-year monthly sales drop since August of 2010. General Motors reported U.S. sales fell 12 percent in January. It blamed the extreme weather for the slump and added it expects sales to recover when the weather warms up.
Citi Research analyst Itay Michaeli wrote in a note that, "We believe the February incentive spending is more indicative of a typical launch pattern than some panic reaction by GM to a noisy January." He added that he would be concerned if the pricing was reduced further or if the discounts failed to increase GM's market share.
Shares of General Motors fell $1.07, or 3 percent, to $35.04 in afternoon trading. Over the past year, the stock is up 27 percent.