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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

2021 Buick Envision order guide shows $32,995 base price

Based on an early dealer guide Cars Direct got its hands on, the 2021 Buick Envision will bring more to the market than handsome new design inside and out. The 2020 Envision in 1SV and Preferred trims starts at $33,500 plus a $1,195 destination charge, totaling $34,695. The dealer guide shows the 2021 Envision Preferred starting at $32,995 after destination, a $1,700 cut compared to this year's model. The 1SV was also listed in the guide but didn't get a price. A Buick spokesperson confirmed to Cars Direct that the Preferred trim will be the new entry-level, so it appears the 1SV could go away. The two trims are equipped the same as standard, the difference being that Preferred opens up the options menu to features like the Active Package and a powered panoramic moonroof. That pricing puts the 2021 Envision thousands of dollars under of its luxury competitors like the Acura RDX, Audi Q5, Lexus NX, and Lincoln Corsair. The price of the middle Essence trim doesn't change, at $36,995 after destination.   The current Premium trim will be replaced by the Avenir trim. At present, the Premium trim only comes in all-wheel drive, which Buick has changed for the 2021 model year. A 2021 Envision Avenir with front-wheel drive will start at $41,395, which is $500 less than a 2020 Envision Premium with all-wheel drive. Adding power to the rear axle adds $1,800 to the price, the Envision Avenir AWD the most expensive model at $43,195. That's a $1,600 cut compared to the 2020 Envision Premium AWD. The only engine on offer will be a 2.0-liter turbocharged four-cylinder with 230 horsepower and 258 pound-feet of torque, the same engine in the 2021 Envision's E2 platform-mate, the Cadillac XT4. That output falls between the two engines that can be had on the 2020 Envision, either the base 2.5-liter four with 197 hp and 192 lb-ft, or an optional 2.0-liter turbo four with 252 hp and 295 lb-ft.  Related Video:

GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.