Shanghai GM cuts Buick prices

Shanghai General Motors (Shanghai GM) cut car prices across-the-board yesterday while unveiling its latest sedan, the Buick GS.

The price cuts, which average 20,000 yuan (about HK$18,700) and take effect immediately, bring the sticker prices on Shanghai GM's top-line sedan from 369,000 to 350,000 yuan, while lowering prices on its bottom-line model from 318,000 to 295,000 yuan.

Company officials yesterday rejected suggestions the Buick's new pricing was motivated by slumping car sales in the mainland.

Shanghai GM president Chen Hong said the cuts were prompted by the launch of its new top-end Buick, which the US$1.52 billion Sino-US joint venture is pricing at 369,000 yuan.

Company executive vice-president Philip Murtaugh admitted first-quarter sales had been hurt by a combination of factors, including uncertainty over entry into the World Trade Organisation.

He said Shanghai GM had sold about 6,000 units during the first three months of the year, accounting for about 50 per cent of Buick's market segment. Last year, the car-maker sold 19,826 of the 23,290 cars it made.