Even though GM's Canadian wing is posting much better sales numbers than the firm's operation in the U.S., it doesn't mean there won't be
changes to the way Oshawa operates.
One of the immediate changes involves a measured move to "right" pricing, says Michael Grimaldi, the president of GM of Canada, while the other involves the type and sourcing of unique new products.
On the pricing front, GM in Detroit and Oshawa want to get out of the rebates and incentives game, which involves putting one price on the sticker and then offering rebates to bring the amount closer to what people are willing to pay.
To break this cycle, both operations have decided to start price their products as near as possible to the point they're expected to sell at. This is the essence of "transactional" pricing.
Along with reducing the need for rebates and incentives, GM believes, transactional pricing also gives its products a better shot at attracting the web shopper who finds GM's those prices to be higher than those of competitors who are already charging closer to transactional levels.
As a result, explained Grimaldi in a phone interview, GM of Canada will be bringing in this pricing structure with new products that make a significant departure from the models they replace. "We started with the Pontiac G6
and the Buick Allure," he said, and "you'll see more of that as we go along. We're just trying to simplify the sales incentive portion of the transaction."
Consumers are interested in getting the best value for their dollar, Grimaldi said, "and when we do it with each new vehicle we think it will work."
Oshawa decided not to follow Detroit's lead with the "employee price" promotion, which gives each buyer the same price for a car as a GM employee gets. It's proved to be very popular in the U.S., and Grimaldi is clearly thinking about bringing it to Canada.
He is also very pleased with the reception of the Canada-only promotion that provides free gas with every purchase, since consumers are reminded of the deal every time they get gas form a Petro-Canada station.
As for future product, Grimaldi said "we're going to continue to do is look around the global company to see if there are any products that would work here but maybe not in the U.S." That would likely mean the introduction of more small vehicles, which has proven to be successful with the import of Canada-unique models from GM's Daewoo operation in Korea.
"You're going to see more interaction from all of GM's global portfolios around the world," Grimaldi said, "and that will mean more unique vehicles for Canada. This is pretty exciting."
GM now does design on a global basis, Grimaldi said. "We want design ideas from all around the world. We're getting unbelievable design alternatives on all these products. Vehicle design will become even more of a vehicle differentiator for GM products. We're going to be able to differentiate them even more and offer more exciting designs at the same time."
photo:GM of Canada
 |
| Michael Grimaldi, President of GM of Canada (photo: General Motors) |
One of the immediate changes involves a measured move to "right" pricing, says Michael Grimaldi, the president of GM of Canada, while the other involves the type and sourcing of unique new products.
On the pricing front, GM in Detroit and Oshawa want to get out of the rebates and incentives game, which involves putting one price on the sticker and then offering rebates to bring the amount closer to what people are willing to pay.
To break this cycle, both operations have decided to start price their products as near as possible to the point they're expected to sell at. This is the essence of "transactional" pricing.
Along with reducing the need for rebates and incentives, GM believes, transactional pricing also gives its products a better shot at attracting the web shopper who finds GM's those prices to be higher than those of competitors who are already charging closer to transactional levels.
As a result, explained Grimaldi in a phone interview, GM of Canada will be bringing in this pricing structure with new products that make a significant departure from the models they replace. "We started with the Pontiac G6
 |
| Pontiac G6 (photo: General Motors) |
Consumers are interested in getting the best value for their dollar, Grimaldi said, "and when we do it with each new vehicle we think it will work."
Oshawa decided not to follow Detroit's lead with the "employee price" promotion, which gives each buyer the same price for a car as a GM employee gets. It's proved to be very popular in the U.S., and Grimaldi is clearly thinking about bringing it to Canada.
He is also very pleased with the reception of the Canada-only promotion that provides free gas with every purchase, since consumers are reminded of the deal every time they get gas form a Petro-Canada station.
As for future product, Grimaldi said "we're going to continue to do is look around the global company to see if there are any products that would work here but maybe not in the U.S." That would likely mean the introduction of more small vehicles, which has proven to be successful with the import of Canada-unique models from GM's Daewoo operation in Korea.
"You're going to see more interaction from all of GM's global portfolios around the world," Grimaldi said, "and that will mean more unique vehicles for Canada. This is pretty exciting."
GM now does design on a global basis, Grimaldi said. "We want design ideas from all around the world. We're getting unbelievable design alternatives on all these products. Vehicle design will become even more of a vehicle differentiator for GM products. We're going to be able to differentiate them even more and offer more exciting designs at the same time."
photo:GM of Canada