GM Announces "March Madness"

[Perian]

Tuesday March 8, 12:49 pm ET
By Michael Ellis

DETROIT (Reuters) - General Motors Corp., hurt by weaker U.S. sales this year and high inventories, will roll out a new consumer incentive program on Thursday that includes a $1,000 cash rebate toward vehicles that have been unsold for more than 120 days, dealers said on Tuesday.

The "March Madness" sale, which can be combined with other sales incentives, is GM's first national incentive program since the automaker named a new head of North American sales and marketing last week.

A GM spokeswoman declined to comment on the incentives. "No program is final until it's final. I have nothing to announce today," said GM spokeswoman Deborah Silverman.

One Michigan dealer, who described his January and February sales as "horrible," said: "We need something for momentum. I'm pretty optimistic that it will give us the momentum we need."

GM's U.S. sales so far this year have fallen more than 6 percent, and the automaker has scaled back production, as highlighted by last week's news that it would lay off 3,000 workers at a Michigan plant and cease production of the cars made there.

Through the first two months of this year, GM had scaled back on its profit-punishing incentives and national advertisements announcing new discount deals, analysts said. But lackluster U.S. sales and high inventories of unsold vehicles meant that GM had to announce another high-profile incentive program sooner or later, analysts and dealers said.

GM offered an average of $3,814 in cash rebates and cut-rate financing on every new vehicle it sold in February, according to industry tracking firm Autodata. That was more than any other automaker, but 9 percent less than GM's average incentives in February 2004, it said.

Last week, GM named Mark LaNeve, who had been instrumental in the resurrection of GM's Cadillac brand, as group vice president of North American sales and marketing. His predecessor, John Smith, was named to the new position of group vice president for global product planning.

Paul Ballew, GM's executive director of global market and industry analysis, said last week that GM's vehicle inventories grew in February, ahead of the usual "spring selling season," and the automaker hoped to cut those inventories heading into the second half of the year.

Source: Reuters

[tom3]

Only my opinion, but I think GM needs to stop the Odd Lots pricing sales tactics and start giving owners the quality and service they deserve. Seems to be working quite well for some of the other brands. Once recognized as a cut rate car company, the image is hard to overcome, especially when routine and warranty service is pretty shaky in many areas and people are getting better informed, thanks to the web.

[gmsickofan]

DETROIT (Reuters) - General Motors Corp., hurt by weaker U.S. sales this year and high inventories, will roll out a new consumer incentive program on Thursday that includes a $1,000 cash rebate toward vehicles that have been unsold for more than 120 days, dealers said on Tuesday.

Wow. Good idea....!?! So how cheap will that 2004 GTO be now...?

[S8ER99]

**************** it.. the bottom is falling out of my car faster than ever before. Grrrrr..

[spudglo08]

There wont be any 2004 GTO's.Well not allot of them anyways.

[tgagneguam]

I'm amazed at GM's nearly endless marketing/incentive brainstorming; just when you think there's no way they can come out with another incentive idea, they surprise and launch one.

Hmmm, it makes me wonder what would happen if that sharp acumen were focused solely on their product line.

[gmsickofan]

Or, in other words, if all of the money for incentives was put into making top-of-class product....

[1999 White C5 Coupe]

Originally Posted by tom3

Only my opinion, but I think GM needs to stop the Odd Lots pricing sales tactics and start giving owners the quality and service they deserve. Seems to be working quite well for some of the other brands. Once recognized as a cut rate car company, the image is hard to overcome, especially when routine and warranty service is pretty shaky in many areas and people are getting better informed, thanks to the web.

Excellent comments - I agree.

[big swede]

Originally Posted by tgagneguam

I'm amazed at GM's nearly endless marketing/incentive brainstorming; just when you think there's no way they can come out with another incentive idea, they surprise and launch one.

Hmmm, it makes me wonder what would happen if that sharp acumen were focused solely on their product line.

That's what I was thinking while reading that. When will GM figure out that they are at the point where only great products priced reasonably will bail them out and not some silly pricing tricks combined with marketing gimmicks.

[Kar Krazie]

Good maybe my dad will trade his truck in for the DTS he wants!

[surferdude00711]

Why not spend 200 more per interior and not give away 2000 on incentives?

[BigDaddyK]

I think that's 45 more posts man. "45"

With this deal, I'm in the hole. I was looking at CTS's last month. They had a 1500 rebate that is now gone. I think I just decided to wait for G6 GTP and GXP info.

Not impressed by the Comp G I drove last month either. You could buff out a torn nail on the rough roof liner easier than with denim pants. GXP better be really great inside, since I expect the rebate wil be cut in half, or more.

[surferdude00711]

Originally Posted by BigDaddyK

I think that's 45 more posts man. "45"

Haha **************** I have to go to bed.......

[mjd1001]

This actually frustrates me about GM also...

I'm almost afraid to buy a GM car with the likelyhood that the car I buy may be $1,000, $2000, even $3000 less a few days later. Also, every time they up the rebates...the potential resale values keep going down.

This is not my #1 factor when buying a car, but it does enter into my decision in a small way.

Plus, how about the Russian Roullette factor? Maybe I'm misunderstanding this...but if I see a white G6 on the lot and a black one next to it....I only get the extra $1000 on the white one if it was there 122 days, but not on the black one if it was "only" there for 97 days??? Why not just make things a little more consistent. The last thing GM needs to do is confuse or frustrate potential buyers.

[Siblio280]

"...but if I see a white G6 on the lot and a black one next to it....I only get the extra $1000 on the white one if it was there 122 days, but not on the black one if it was "only" there for 97 days??? Why not just make things a little more consistent. The last thing GM needs to do is confuse or frustrate potential buyers."

Watch...anyone interested in a GM vehicle will wait until its been sitting on the lot for 120 days.... that should be good for march sales.