GM Doubles Discounts on Trucks, Escapes Plaintiff’s Complaints

General Motors increased discounts on large pickups after its prominent units dropped in sales in June. Following the report, the US judge dismissed the  compensation claims of the customers on the safety recalls in 2014.

Last month, the U.S. sales of Silverado and Sierra dropped by 3.7 percent and 7.8 percent respectively as the sales of Ford’s F-Series  moved higher. GM made series of advertisements to to gain the interest of the car buyers and the full-size pickup enthusiast.

Michelle Krebs, a senior analyst with researcher Auto Trader, explained that GM had a big promotion in June and it didn’t really move the needle so they sweetened it. “It appears from the sales numbers in June that the truck-bed ad wars did not resonate with consumers in a way that sent them to Chevy and GMC trucks,” Mr. Krebs added.

gm

The automotive accompany offered 20 percent off sticker prices, which accumulated significant increase of sales of its big pickups in the first two weeks of July.

GM spokesman Jim Cain reported that they had an eight-day sale that absolutely obliterated Ford and their other competition, especially in full-size pickups. Adding to the upbeat report, fully half of the full-size pickups sold to retail customers during the first 10 days of July were a Chevrolet Silverado or a GMC Sierra.

Despite the positive turn of report, GM might announce the same discounts offered by its major competitors before August. Mr. Cain lauded the contribution of the Chevy truck-bed ads in the success of the sales of GM trucks.

Separately, US District Judge Jesse Furman dismissed the compensation claims against GM and the accusation that the sold vehicles were defective.

Furman-GM

Judge Furmann wrote in his report that plaintiffs’ pursuit of damages based purely on perceived harm to GM’s brand following more than 70 recalls in 2014 was “unprecedented and unsound.

“The court finds that that novel theory of damages is unsound in light of persuasive precedent interpreting consumer-protection law,” Mr. Furmann added.

One of the complainants accused the car maker of delaying the recall of defective units which triggered the death of 124 individuals. GM has paid $2 billion to address the claims on its defective steering, brakes and air bags.

Steve Berman, the lawyer of the plaintiffs remained firm on his stand in the case. Attorney Berman said that the GM recalls were unprecedented, and the law should be able to react to this. The plaintiffs’s lawyers may appeal to the court to seek the compensation for the damages done by the faulty units of the U.S. auto maker.

recall list

However, after the result was released, Mr. Cain sounded optimistic in the recovery of the company from the issue. “The court made it clear the plaintiffs overreached in many aspects of their complaint and the ruling significantly curtails the scope of their potential recovery,” Mr. Cain said.

Recently, General Motors Company went up 0.03 percent to $30.77 with a price earnings ratio of 4.61 percent. The Michigan based multinational firm had a market capitalization of $47.40 billion and a dividend yield of 4.94 percent.

General Motors is the team behind the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. It mainly designs, builds and sells cars, trucks, crossovers and automobile parts. Also, it offers cars and trucks to fleet clients and provides daily rental cars.

Do you want to know more about trading? Here’s the best trading platform which offers the best trading experience! Visit Trade12.com and see where your money can take you. Do you still need financial services? Exocpm.com offers a wide array of reliable, secure, and competitive financial services to over 100 countries. Have the best of both worlds. LEARN AND TRADE!

Advertisements

Author: exocapitalfinancepro

As the dissemination of online financial news gets easier through the evolution of different media platforms, Exo Capital Finance Pro brings the most comprehensive up-to-date financial information right in front of your eyes. In line with the mission of Exo Capital Market, this news blog aims to provide the financial ideas needed by the clients through the market news and analysis delivered regularly. Exo Capital Mission Grounded on financial stability and service efficiency, Exo Capital Markets Ltd. hopes to stimulate and drive innovation in the world by catering the needs of its clients. Committed to guiding its clients to achieve their maximum potentials, the company seeks to lead and bring growth into the market through the high quality services it provides. Exo Capital Vision Exo Capital Markets Ltd. strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry. The company wants to create an avenue of knowledgeable and competent traders by assuring accountability and honesty in delivering the services we provide for the community.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s