Vehicle incentives at GMC were right on pace with Chevy’s during the fourth quarter of 2021, falling 66 percent year-over-year amid low inventory and high demand.
According to Cox Automotive, GMC’s incentive spending dipped 66 percent year-over-year from $3,193 in the fourth quarter of 2020 to $1,924 in the fourth quarter of 2021.
Just like Chevy, GMC’s average transaction prices were up in Q4 2021, rising 14 percent to $62,501. This rise was driven by higher ATPs for the GMC Acadia crossover and GMC Canyon pickup, which sold for an average of 13 percent and 10 percent higher than in Q4 2020, respectively. The GMC Sierra, Yukon and Yukon XL continued to drive high ATPs, as well, with the Sierra selling for an average of $63,181 and the Yukon and Yukon XL selling for an average of $75,440 and $78,779, respectively.
GM slashed incentive spending by 65 percent across all four of its brands in Q4 2021 to an average of $1,919 per vehicle. This compares with incentive spending of $5,115 per vehicle in the fourth quarter of 2020. Cadillac had the highest incentives last quarter at an average of $4,172 per vehicle, followed by Buick at $3,207 per vehicle, Chevy at $2,672 and finally GMC at $1,924 per vehicle.
GM sales plummeted by 43 percent to 436,358 vehicles in the fourth quarter of 2021, as GM Authority reported previously. While this would normally be very bad news for the American automaker, reduced incentive spending has increased ATPs at all four of its brands which will likely contribute to higher profit margins for the quarter. Cox, therefore, expects GM to report solid earnings for Q4 2021. The automaker is also selling more examples of its pricier nameplates than in years previous, like the Yukon, Chevy Silverado, and Chevy Corvette, for example.
“GM clearly focused on the production of its high-ticket models, some of which had sales increases combined with ATP gains,” Cox Automotive observed.
With automotive production output expected to remain low in 2022 as the semiconductor chip shortage continues, it seems unlikely incentive spending will rise very much at any of GM’s four brands this year.
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Comments
Biden said he would handle the semi conductor shortage! What has he done?! Still a shortage!
I guess the GM employee discount is done for the Escalade….any dealership taking it u know of
Genesis Cadillac in St Clair Shores MI will.
LMAOOOOO
It’s so funny how gm spins the headlines for “demand” as a reason to drop incentives and raise cost versus the known chip shortages and very low production rate and low inventory to fill the lots.
Just like a political party, “take advantage of the current situation for your gains.” Suppress the truth from the people as we smile all the way to the bank. Don’t tell them we are getting hundreds of millions for EVs from the gov’t, reaping hundreds of millions from foreign countries lead by China.
75k SUV and the best they can do is 1,500.00 discount…lol
why don’t gmc offer the 5.3 v 8 in the canyon it would be a big seller