Deal or No Deal? Pricing Strategies for the Subprime Auto Buyer GM

Is it unethical to engage in pricing practices that push sales of automobiles to customers who may otherwise have difficulty affording them?
Trevor Harris, Olivier Toubia  | Spring 2011
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When US credit markets began to loosen up in 2011, some auto dealers viewed this as an opportunity to recapture subprime customers. This case asks students to consider whether it is unethical to engage in pricing practices that push sales of automobiles to customers who may otherwise have difficulty affording them. This is one of a collection of cases that comprise the General Motors Integrated Case, viewing GM’s business issues from multiple perspectives, devised specifically to be taught in Columbia Business School’s Core curriculum.

Case ID: 112109
Supplemental Materials: Teaching Slides
This case is used in core curriculum

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