GM to offer worker discounts to consumers
Incentive to cut bloated inventories of unsold cars and trucks
Updated: 12:23 p.m. ET June 1, 2005
DETROIT - General Motors Corp., suffering from a protracted slump in its U.S. auto sales, will announce Wednesday that the same vehicle discounts available to its employees will now be offered to the general public, dealers said.
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The new consumer incentives program is aimed at trimming bloated inventories of unsold cars and trucks and reversing the decline in sales and market share that prompted the world’s largest automaker to report a massive $1.1 billion loss in the first quarter.
GM dealers based in Michigan said the employees discounts would be offered in addition to other incentives that include cash rebates, giving consumers thousands of dollars off the sticker price of virtually every 2005 model car and truck that GM sells.
GM and rival Detroit-based automaker Ford Motor Co. are both expected to report declines in May sales later Wednesday. Ford has said it too was raising cash incentives on some of its slower-selling vehicles.
But GM has led Detroit’s profit-gouging price war since it launched interest-free loan deals to draw customers into showrooms after Sept. 11, 2001, attacks on the United States.
A GM spokeswoman declined to comment on the incentives.
The GM dealers said the employee discounts would be offered to customers nationwide and are expected to deliver a big boost in the automaker’s June sales.
“I think this is going to be a record-setting month,” said Brian Gerts, a sales manager at Bill Crispin Chevrolet in Saline, Michigan.
“I’m definitely stoked about this. I think it’s going to be great,” he added.
Many dealers outside of Michigan said they had not yet been informed of the incentives program.
Both GM and Ford have relied on sales of mid- and full-sized sport utility vehicles for much of their auto-related profits since the late 1990s. But analysts say big SUVs, especially from the aging and fuel-thirsty lineups offered by GM and Ford, have become less attractive as U.S. gasoline prices hover near record highs.
In markets like Michigan, dealers say up to 75 percent of their customers already benefit from the discount deals that GM has traditionally offered to its employees, their relatives and the employees of auto parts supplier companies that do business with GM.
Copyright 2005 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.
Time to buy a new GM vehicle!
- Thread starter Cutehumor
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quote:My thoughts exactly
Originally posted by kenw: "well, boss, between rebates, dealer incentives, and financing we're losing $1000 on every sale. But we're making it up in volume...." What's lower than Junk status for corporate bonds?
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It was interesting a couple of weeks ago when I purchased my new Subaru. The dealership sells Subaru, Pontiac, Mazda and Porsche. I was there on a Saturday, and in the 4 hours I was there they sold 3 Subarus (including mine), 1 Mazda, no Porsches (I'm not surprised) and NO Pontiacs. There were also lots of lookers for Subarus and Mazdas, but almost no one was looking at the GM's.
Being a GM dealer has to feel like you're on the deck of the Titanic and the ice berg has been struck...GM will be chapter 11 just like United Airlines.
GM owns part of SUBARU!!! which is why the new 9-2 SAAB is a rebadged SUBARU ala SAABARU wagon being GM owns interest in both companys. So if GM goes down, along goes SUBARU, SAAB, etc.
quote:It's funny that Subaru can make a profit, but GM can't!
Originally posted by gudmund: GM owns part of SUBARU!!! which is why the new 9-2 SAAB is a rebadged SUBARU ala SAABARU wagon being GM owns interest in both companys. So if GM goes down, along goes SUBARU, SAAB, etc.
GM bought into SUBARU a few years ago when SUBARU was not being very 'profitable'. It was with GM's money that they profited just like you will see FIAT become profitable after the influx of GM's 2 billon of so in their stupid buisness deal they stung themselves with! YES it is very funny!!! (along with the new SAAB "SUV" that is nothing but a rebadged Chevy Tailblazer-with a repositioned ignition switch the SAAB way between in the console, suppost to be a safty feature-Har-Har).
quote:What kind of a maroon dealership would try to sell Pontiacs alongside Subarus, Mazdas and Porsches? Even if someone set out with buying a Pontiac in mind, seeing those cars alongside a Pontiac is going to make the more observant customers think twice about their original choice.
Originally posted by michaelc80: It was interesting a couple of weeks ago when I purchased my new Subaru. The dealership sells Subaru, Pontiac, Mazda and Porsche. I was there on a Saturday, and in the 4 hours I was there they sold 3 Subarus (including mine), 1 Mazda, no Porsches (I'm not surprised) and NO Pontiacs. There were also lots of lookers for Subarus and Mazdas, but almost no one was looking at the GM's.
When it gets to the point that all the GM rebates and incentives are more than MSRPs, I still won't buy one!!!!!!!!!!!!!!!
Two guys decide they want to go into business selling watermelons.
They setup a produce stand, purchase a truck and drive out to a farm and buy a whole truckload of watermelons for $1 each.
They price the watermelons at $.75 each and every day for a week they sell out completely.
At the end of the week they count their money and notice they've lost thousands of dollars.
The "thinking" one of the two thinks about it for a long time and suddenly realizes what he's sure is the problem.
He says to the other - " I know what we need! We just need a bigger truck!!"
This new incentive program for GM should be just the truck they need... ![[Wink]](images/icons/wink.gif)
[ June 01, 2005, 10:33 PM: Message edited by: jsharp ]
[ June 01, 2005, 10:33 PM: Message edited by: jsharp ]quote:GM only owns 25% of Subaru. If GM goes down another manufacturer or stock market will pick up the remainder. GM has little influence Subaru as they do not share one item except maybe On-Star. Even the Saab 9-2X is really a thinnly disguised Subaru. Subaru is doing very well in their history and I know if GM was involved this would not be true.
Originally posted by gudmund: GM owns part of SUBARU!!! which is why the new 9-2 SAAB is a rebadged SUBARU ala SAABARU wagon being GM owns interest in both companys. So if GM goes down, along goes SUBARU, SAAB, etc.
quote:The dealership is a long time Pontiac dealership (since 1946). In the last few years they have diversified with the additional lines. They did have one beautiful 1963 Pontiac convertible that drew some attention. It wasn't for sale though
Originally posted by XS650:quote:What kind of a maroon dealership would try to sell Pontiacs alongside Subarus, Mazdas and Porsches? Even if someone set out with buying a Pontiac in mind, seeing those cars alongside a Pontiac is going to make the more observant customers think twice about their original choice.
Originally posted by michaelc80: It was interesting a couple of weeks ago when I purchased my new Subaru. The dealership sells Subaru, Pontiac, Mazda and Porsche. I was there on a Saturday, and in the 4 hours I was there they sold 3 Subarus (including mine), 1 Mazda, no Porsches (I'm not surprised) and NO Pontiacs. There were also lots of lookers for Subarus and Mazdas, but almost no one was looking at the GM's.
quote:I just bought a Buick Terraza on my Dad's GM discount. You are allowed to apply GM card points to an employee purchase. I don't know about Saturn, but I would expect that to be included.
Originally posted by eljefino: Think that will allow GM card points, and/or include saturns?
quote:Actually... it also has independent rear suspension... you can't find that on any of the Trailblazer triplets.. I still won't touch a GM vehicle.
Originally posted by gudmund: along with the new SAAB "SUV" that is nothing but a rebadged Chevy Tailblazer-with a repositioned ignition switch the SAAB way between in the console, suppost to be a safty feature-Har-Har).
quote:The Corvette isn't included in the "employee discount to the public" offer. GM makes some good cars. FWIW I haven't had any problems at all with my 2002 Cavalier.
Originally posted by 1 FMF: I wonder what the price will be of the new corvette with the 500hp LS7 motor.
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quote:Compared to 30 years ago, even average cars are steller quality. There aren't very many really bad cars anymore. Customers expactations have risen at least as fast as quality though, maybe faster.
Originally posted by cousincletus: The Corvette isn't included in the "employee discount to the public" offer. GM makes some good cars. FWIW I haven't had any problems at all with my 2002 Cavalier.
quote:If they make such "good cars" why do they struggle so? Is it because they are so good they last forever therefore no need to buy another?
Originally posted by cousincletus:quote:The Corvette isn't included in the "employee discount to the public" offer. GM makes some good cars. FWIW I haven't had any problems at all with my 2002 Cavalier.
Originally posted by 1 FMF: I wonder what the price will be of the new corvette with the 500hp LS7 motor.
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They struggle because of people such as yourselves ![[Frown]](images/icons/frown.gif)
that refuse to see that they do in fact make some very good cars. It is very "in" these days to cry about outsourcing but then refuse to buy American because it isn't as good as imported stuff. ![[Roll Eyes]](images/icons/rolleyes.gif)
When fact is imports have troubles too they just are not talked about as much, which is in part because I think corporate deals with them better.
I like how one of the big three has a recall and it is news for a week and remembered for long after but Toyota just had a large recall and barely a blurb. Not saying Toyota is bad they have a long standing record of quality.
The domestics did build junk in the 80s but today are much better and have not recouped their image.
[ June 02, 2005, 09:00 PM: Message edited by: DJ ]
that refuse to see that they do in fact make some very good cars. It is very "in" these days to cry about outsourcing but then refuse to buy American because it isn't as good as imported stuff. When fact is imports have troubles too they just are not talked about as much, which is in part because I think corporate deals with them better.
I like how one of the big three has a recall and it is news for a week and remembered for long after but Toyota just had a large recall and barely a blurb. Not saying Toyota is bad they have a long standing record of quality.
The domestics did build junk in the 80s but today are much better and have not recouped their image.
[ June 02, 2005, 09:00 PM: Message edited by: DJ ]- Status
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