GM ends employee discount program

[Ming]

Saturday, October 1, 2005
GM ends employee discount program
By Dee-Ann Durbin / AP Auto Writer

DETROIT -- General Motors Corp. is ending its popular employee discount incentive, which let buyers pay the employee price for vehicles throughout the summer.

The promotion was scheduled to end Friday at the close of business for each dealer, GM spokeswoman Deborah Silverman said.

GM introduced the incentive in June and originally planned to end it in July, but it proved so popular that the company extended it several times. GM's U.S. sales shot up 41 percent in June and 19 percent in July. The discount was in place on most 2005 vehicles as well as some 2006 full-size trucks and sport utility vehicles.

Ford Motor Co. and DaimlerChrysler AG's Chrysler Group matched the program in July. Both automakers plan to end their employee incentives on Monday.

Analysts are predicting a sales hangover for U.S. automakers this fall, since the discounts depleted 2005 inventories and pulled ahead sales to the summer. GM's U.S. sales fell 16 percent in August and are expected to fall even farther in September. Automakers report September sales on Monday.

GM is trying a new pricing strategy with its 2006 models. The automaker has lowered overall prices and hopes to rely less on incentives going forward.

Source: http://www.detnews.com/2005/autosins...tos-333517.htm

[Perian]

Originally Posted by Ming

Ford Motor Co. and DaimlerChrysler AG's Chrysler Group matched the program in July. Both automakers plan to end their employee incentives on Monday.

What a stunning move on the part of GM.

Need to do some reading this weekend?

Forget the library - go down to your local GM dealer...You will find all of the peace and quiet you need.

All vehicle shoppers will be at Ford and Chrysler dealers looking for 05 models that no longer exist.

Most will be bait and switched to 2006 units.

[2000GTPBROTHER]

Sure, because if they were able to wait out the first 122 days including the last 96 hour blitz, they will fall in the last extra 3 days.

Can see the headlines now, "Man wakes up from coma, runs out and buys 2006 Durango".

If the stroy had been "GM continues program until Oct 3rd to match Ford & Chrysler", the first post would have been "when will this stupid program end".

Most GM dealers will be doing the same thing this weekend they have been doing for the last couple weeks, selling 2006s. Only today they will have incentives on some of them. My cousin looked at a Grand Prix GXP a couple times this week, already got a call this morning that reabte is up today. She is going in to sign today.

[Motownr]

Actually, most GM dealers will be sitting down with their CFOs wondering how in the heck they lost so much money in September. In our part of Michigan, sales are running at 50% of year-ago numbers.

As you'd expect, the pain is most acute at Saturn and PBG stores, where traffic is really thin.

If the sales dip continues, as predicted by many, I'd expect to see a lot of stores changing hands.

[Perian]

Originally Posted by Motownr

Actually, most GM dealers will be sitting down with their CFOs wondering how in the heck they lost so much money in September. In our part of Michigan, sales are running at 50% of year-ago numbers.

As you'd expect, the pain is most acute at Saturn and PBG stores, where traffic is really thin.

If the sales dip continues, as predicted by many, I'd expect to see a lot of stores changing hands.

Do you expect an upturn in business from the >real< GM employees who have held off purchasing vehicles during the national incentive program?

Now that the rebates have increased, and they can still get the GM Employee Price discount - this may be a bright spot for you - after all - 25% of GM sales are fleet/employee based.

Good selling.

[Buick61]

I really do think compelling products at a fair price will help mitigate the losses. I didn't even consider an '05 G6 because they didn't have anything close to what I wanted. But the '06 had a more compelling drivetrain, interior, exterior (in terms of wheels), and it was priced, with rebates, in a reasonable manner.

[dindak]

I see in this mornings paper big full page ads touting value pricing. They looked pretty good, lower MSRPs make sense to me.

[paul8488]

Well they had to end at some point. Why not today. Seems like most are calling for the rest of the year to be a write-off... but hopefully the hot selling Impala and HHR will continue their ways, and that the G6 variants, Cobalt, and full size trucks can at least maintain until most of the pulled-ahead buyers are no longer a factor.

[hudson32]

I see some of the MSRP's for the 2006 GM cars and trucks. Some of the cars I've seen now represent outstanding values. And I think this will work for good for the company. When people see a competitive price on the MSRP, they will more likely retain interest in the product, rather than have a high retail price, to be discounted later.

[plane]

Why don't we have a poll? (Darned if I can make one with the GMI php script)

Which do you prefer:

a.) Endless incentives that scream "Pathetic Vehicle - Buy Me Cheap"
b ) "Employee Pricing" which results in Uber-Neurotic Auto Sales Mood Swings
c ) Class leading vehicles fairly priced to build market share and entice internet shoppers to stop and take a second looK?

[Buick61]

Originally Posted by plane

Why don't we have a poll? (Darned if I can make one with the GMI php script)

Which do you prefer:

a.) Endless incentives that scream "Pathetic Vehicle - Buy Me Cheap"
b ) "Employee Pricing" which results in Uber-Neurotic Auto Sales Mood Swings
c ) Class leading vehicles fairly priced to build market share and entice internet shoppers to stop and take a second looK?

Yeah, like those aren't leading choices.

[Buickman]

The hangover is just beginning. The disaster, unforeseen by short sighted GM management, will play itself out over the last quarter. Look for a lease pull ahead as it is the only option known to the idiots who give incompetency a bad name.

www.GeneralWatch.com

[tgagneguam]

Originally Posted by Buickman

The hangover is just beginning. The disaster, unforeseen by short sighted GM management, will play itself out over the last quarter. Look for a lease pull ahead as it is the only option known to the idiots who give incompetency a bad name.

www.GeneralWatch.com

You may be - just maybe - more bitter than I. I wasn't sure that that was possible.

[GM_SALES_REP]

We are now 2 1/2 hours into our day here at the dealership. Business is still coming in thru the doors. People have no idea what the incentives are and to be quite honest either do 1/2 of the sales staff. GM dropped the ball here at the end.

[2000GTPBROTHER]

Originally Posted by GM_SALES_REP

We are now 2 1/2 hours into our day here at the dealership. Business is still coming in thru the doors. People have no idea what the incentives are and to be quite honest either do 1/2 of the sales staff. GM dropped the ball here at the end.

What does "dropped the ball here" mean? Are you saying that GM should have called there (here to you) and personally told each salesperson what the incentives where today? Can't they go on line, like you, and go to GM.com and see them?