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GMC Shanghai Offers 5 Ton Incentive

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On: Wed, May 23, 2012 at 5:06PM | By: Chris Salamone

GMC Shanghai Offers 5 Ton Incentive

We’ve witnessed some pretty impressive truck incentives over the years, perhaps with the deepest discounts seen during the beginning years of the Great Recession. From Employee Pricing, to months of free gas, trucks are becoming harder and harder to push on new vehicle buyers. In the spirit of desperation, then, at least one GMC dealer in Shanghai, China has taken the truck sales incentive to a whole new level: the 2012 GMC Sierra Denali includes five tons of free gas.

That translates to about 2,000 gallons of gasoline, or slightly over three years of relatively normal use. Sounds interesting, right? Wait till you hear the catch.

Why/how can GMC Shanghai offer such a heavy-handed incentive? Desperate times call for desperate measures. Turns out big trucks don’t sell very well in Shanghai, where narrow streets make the Sierra Denali both a status symbol and an incredible inconvenience.

Although the Sierra Denali is considered something of a luxury item in the US, in China this particular truck is priced at about $134,000 (enter catch). That’s much more expensive than the average upperclassman can afford, let alone rural farm type. Paul A. Eisenstein from The Detroit Bureau suspects: “Unlike most of the products General Motors sells in China the GMC Sierra Denali is an import, the hefty duties [are] one reason why it costs more than double what the same truck commands in the States.”

And Eisenstein isn’t kidding. A 2012 Sierra Denali sold in the United States lists for about $50,000 – a far cry from the Lamborghini reminiscent price found on the same model in China and would-be Chinese Sierra Denali buyers certainly aren’t getting a Lamborghini! Despite tens of thousands of dollars in improvements, the Sierra Denali is still a sloppy handling, fuel consuming, reasonably appointed truck. We aren’t talking about the Bentley of pickups here.

Back in 2009, full size American pickups first started showing up in China. But who knows how long they’ll be around. If it takes 5 tons of fuel to sell a GMC Sierra Denali, how long can GM possibly afford to maintain pickup sales operations? Factoring the current exchange rate, 2,000 gallons of gas works out to about an $8,000 discount. Know anyone willing to spend $126,000 on a 2012 GMC Sierra Denali? Me neither…


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