Electric vehicle manufacturers in 2023 offered discounts and lowered prices in an attempt to lure consumers into their showrooms to purchase cars. The strategy may have work for some EV companies, including Tesla (TSLA) – Get Free Report, which managed to squeak past its annual goal and delivered 1.81 million vehicles in 2023.
When Tesla’s third quarter deliveries fell below market estimates, Elon Musk in early October lowered the list price of the Model 3 from $40,240 to $38,990 and its industry leading seller Model Y from $47,740 to $43,990.
Related: Rivian, key Tesla rival, contends with recall and drop in deliveries
Ford (F) – Get Free Report also looked to generate more business by cutting the price of its all-electric Mustang Mach-E by up to $4,000 in May and its F-150 Lightning by about $10,000 in July.
GM uses incentive program to lower prices
General Motors’ Chevrolet brand partnered with Costco (COST) – Get Free Report in December to offer the warehouse retailer’s members a limited-time special $1,000 discount on a purchase or lease on a Chevy Blazer EV as part of GM’s Costco Auto Program. GM already offered the internal combustion engine Chevrolet Silverado 1500 and the Equinox in the program since Nov. 1 and the Silverado HD since Nov. 22.
Other electric vehicles offered in the $1,000 Costco incentive program included Volvo C49 Recharge crossover and Volvo XC40 Recharge SUV, as well as the Polestar 2 EV. Other ICE vehicles in the program included Buick Enclave; GMC Sierra 1500 and the Terrain SUV; and seven Volvo ICE vehicles, beginning in November. Members had to take delivery by Jan. 2, 2024, to receive their discount and must have been a member of Costco by Oct. 31, 2023, to qualify.
Cadillac’s 2023 LYRIQ
Cadillac
Costco offers Cadillac discounts
While the Chevrolet, Buick, GMC and Volvo discount programs have just expired, GM and Costco have revived a special Costco Auto Program discount for its luxury Cadillac vehicles that the partnership ran from January 2023 through February 2023 and Costco called a success. This year, eligible Costco members can take advantage of a $1,000 member-only savings incentive on purchases of new 2023 and 2024 Cadillac CT4, CT5, XT4, XT5 and XT6 from Jan. 3 through Feb. 29, 2024.
New to the program in 2024, however, is the new all-electric 2024 Cadillac Lyriq, as the model was not available in the 2023 discount program. Last year, the Cadillac XT5 was the most purchased vehicle in the promotion, according to Costco.
“It’s no surprise that the vehicle Costco members purchased most during the promotion is also the best-selling model for Cadillac in the U.S.,” Jay Maxwell, Costco Auto Program General Manager said in a statement. “Costco Auto Program data shows members who use our program lean toward luxury brands. In fact, 26.2% of all vehicles sold through the program from Jan. through Nov. 2023 were luxury vs. 17.9% for the industry.”
To qualify for a $1,000 Costco member-only incentive discount, buyers must be a Costco member by Jan. 2, 2024 and take delivery of the vehicle by Feb. 29, 2024. Participants must also register with the Costco Auto Program online or through the call center to receive a certificate with a unique promotion code that they must present to a Cadillac dealer when they purchase the vehicle, as Costco stores do not sell any vehicles. The Cadillac CT5 Blackwing is excluded from the program.
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