Gasgoo.com (Shanghai July 27) - "Starting today, [our] dealerships throughout the whole country will begin implementing a new promotional offer for [Chevrolet] Malibus," a written statement from Shanghai GM, as cited by a China Business News report appearing today, read. "Prices for the whole series will be reduced by 20,000 yuan to 25,000 yuan ($3,132-$3,915)," the statement continued, adding that "following the price cut, the Malibu will be the first Western [brand] midsize to enter the 150,000 yuan ($23,492) price range in China."
The news marks the first time that Shanghai GM has officially reduced the price for one of its models. However, given the increasingly competitive state of the passenger automobile market, the joint venture was probably left without a choice.
According to Qi Liren, general manager of a Chevrolet dealership in Shanghai's Pudong District, price has always been the imported Malibu's (pictured) Achilles' heel. The Malibu has already gained consumer recognition and approval, but the price gap between it and its competitors has left it relatively uncompetitive, Mr. Qi said. The six-speed automatic transmission Malibu, which made its debut in February, is currently priced between 162,900 yuan and 229,900 yuan ($25,512-$36,006).
Upon its debut, Shanghai GM announced its aspirations to sell 6,000 Malibus monthly. However, according to the most recent statistics from the China Association of Automobile Manufacturers, sales for the car in June totaled just 1,735 units, with only 12,600 units sold over the first six months of the year.
