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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

2020 Chevrolet Tahoe, Suburban and GMC Yukon all spied with production lights

One of our spy photographers just caught a smattering of full-size GM SUVs out testing, including the Chevrolet Tahoe, Suburban and GMC Yukon. Previous spy photos of the next-generation of these big GM SUVs have revealed that GM is going with an independent rear suspension design, and these shots confirm the news once again with our best look at the hardware yet. Check them out from the rear, lined up like ducks in a row to see the beefy control arms down there. This will undoubtedly give the big SUVs a more compliant ride, and should bring it back into touch with the refinement from the Ford Expedition and Lincoln Navigator. The new bits we get to see with these shots are production headlights and taillights that are shaping up to look pretty neat. Most distinguishable are the GMC Yukon's LED DRLs. These look a lot like the C-shaped LEDs outlining the headlights on the Sierra, but they have an extra LED strip on top of the C. The parts of the taillights that we can see look significantly different than that found on the Sierra, showing GM is planning on having a great deal of differentiation there. We can sort of see through the mesh covering the grille to what appears to be a classic horizontal bar style front opening. Chevy is predictably dialing the crazy LED strip design back for the Tahoe and Suburban. The parts that are lit up look a whole lot like the headlight fixtures on the 2019 Silverado. That truck uses a stack of lights with the actual headlights separated from the DRLs. We can see the same thing going on here, with the headlight up top and curved LED DRL strip sitting below. It's tough to say if the designs are exactly alike, but we expect to see an extremely Silverado-esque look once all the camouflage comes off. Chevrolet's taillight design differs from its donor truck like the GMC, showing off a curved, vertical series of LEDs out back. Once production lights start popping up like this, we know the vehicle is moving closer to its end game. A reveal sometime later this year could be in the cards for GM's next batch of full-size SUVs. It certainly needs them quick, as Ford rockets ahead with increased Expedition production announced earlier this week.

How Chevy Silverado, GMC Sierra will take on the Ford F-150 profit machine

FORT WAYNE, Ind. — When General Motors engineers were developing the 2019 Chevrolet Silverado and GMC Sierra pickup trucks, some of them joined public tours of Ford's Dearborn, Mich., factory to watch aluminum-bodied F-Series trucks go down the assembly line. The redesign of the Ford F-Series trucks, launched in 2014, set a new standard for fuel economy and lightweight vehicle construction. But armed with stopwatches and trained eyes, the GM engineers believed they saw problems. "They had a real hard time getting those doors to fit," Tim Herrick, the executive chief engineer for GM truck programs, told Reuters. His team did more intelligence gathering. They bought and tore apart Ford F-Series doors sold as repair parts. Their conclusion: GM could cut weight in its trucks for a lower cost using doors made of a combination of aluminum and high-strength steel that could be thinner than standard steel, shaving off kilograms in the process. These pounds-and-pennies decisions will have major implications in the highest-stakes game going in Detroit: dominance in the world's most profitable vehicle market, the gasoline-fueled large pickup segment. What's more, GM is banking on strong sales of overhauled 2019 Silverados and GMC Sierras to fund its push into automated and electric vehicles — a business many investors see as the auto industry's long-term future. The risks are high given the hits automakers have taken from U.S. President Donald Trump's trade policies. Rising aluminum prices spurred by Trump's tariffs are driving up costs on the Ford's F-Series, while rising steel and aluminum prices likewise drag on GM results. GM also has a significant risk should the United States, Mexico and Canada fail to agree on a new NAFTA trade deal, given GM trucks built at its Silao, Mexico, factory could face a 25 percent tariff if NAFTA collapses. Major profit per truck Interviews with GM executives and a tour at its factory here in northwest Indiana provide a detailed look inside GM's plan for the most important vehicles in its global lineup. These big pickups are everything Tesla's Model 3 or Chevy's Bolt electric car is not. The mostly steel body is bolted to the truck's steel frame, rather than the one-piece body and frame electric vehicles. The majority of trucks will have a V-8 gasoline engine powering the rear wheels — like the classic GM cars of the 1950s. Some Silverados will have new four-cylinder engines, but there is no electric or hybrid offering as of now.