GM's Red Tag Sale Brings Astonishing Car Prices

General Motors continues its Red Tag Sale program with new astonishing prices to a wide range of models, including Chevrolet, GMC, Pontiac, Cadillac, Saab and Hummer. The Red Tag Sale is a program set up by GM which brings special prices for various car models, allowing dealers to post fixed prices on certain cars. This way, the overall price is reduced by several grand, the American company explained. More importantly, all prices will be pretty much the same in all dealerships but will exclude taxes and other fees imposed by dealers.

But even so, prices remain surprisingly low, as Kicking Tires explained, with some rebates ranging between $5,000 and $10,000. For example, a 390 horsepower Chevrolet TrailBlazer SS could be purchased for no more than $23,338 as part of GM's Red Tag Sale program, with the original price going as much as $32,900.

More importantly, General Motors' special-prices program will also force rival companies to reduce prices on certain models, especially if taking into account the economic downturn recorded by most large carmakers.

On the other hand, the Red Tag Sale can also represent a new chance to sell more trucks and SUVs which have become pretty unpopular since the apogee of the global recession, with more and more buyers turning their eyes to Japanese and European cars. Nevertheless, US companies, and Detroit 3 in particular, struggles to adopt the same strategy as the overseas companies, which seem to have found the key to success: environmentally-friendly engines capable of developing decent power and advanced fuel economy.

In fact, even president-elect Barack Obama and members of the United States Congress admitted that US companies should become smarter in their market strategies and adopt the Japanese models which brought less loses to their parent companies, especially thanks to the aforementioned attributes.