GM Extends 60-Day Guarantee

[nsap]

GM Extends 60-Day Guarantee
99% of customers keeping their GM vehicles
www.gminsidenews.com
October 30, 2009
By: Nick Saporito

Today General Motors announced that it is extending the 60-day guarantee campaign that allows buyers to return their vehicle within 30-60 days after the purchase. According to GM, 99% of buyers that have opted for the guarantee have kept their GM vehicle.

Launching in December, GM will advance the "May the best car win" advertising campaign with more head-to-head comparisons between GM vehicles and the competition. Above is one of the slated magazine spreads for the 2010 Chevrolet Malibu

Originally Posted by GM Press Release

GM’s “May the Best Car Win” marketing campaign is boosting consumer opinion and consideration of its cars and trucks. The ads scored in the top quartile for all automotive advertising in the last three years in terms of consumer opinion, consideration and relevancy, according to GM’s internal testing data.

“The campaign is getting the word out about how good GM’s new products are,” Jay Spenchian, executive director, Marketing Strategy, said Thursday during a media update on the marketing campaign. “We’ve seen positive coverage and increased awareness of launch products like the Buick LaCrosse and GMC Terrain.”

Spenchian also said GM’s successful 60-Day Satisfaction Guarantee, which is part of the campaign, will be extended through January 4. “More than 99 percent of buyers who choose to take the Satisfaction Guarantee are keeping their vehicle,” he said.

The next phase of the campaign will launch in December with head-to-head ads in magazines, newspaper and web sites.

[377Z]

...So how many people actually opted for the guarantee, versus the extra $500 rebate?

[drew630]

Originally Posted by 377Z

...So how many people actually opted for the guarantee, versus the extra $500 rebate?

Edit:
If it's only still only 15 people or even a few more who have actually returned a vehicle, GM should make this permanent, not a promotion.

[Buick61]

Originally Posted by nsap

Why does that ad compare the mid-level Camry to the top level Malibu? There's nearly $5,000 between starting prices for them.

Originally Posted by 377Z

...So how many people actually opted for the guarantee, versus the extra $500 rebate?

Fewer than 500 people so far have opted for the guarantee.

[oachalon]

Originally Posted by drew630

If it's only still only 15 people or even a few more, GM should make this permanent, not a promotion.

I agree. Saturn always had the 30 day return if you did not like the vehicle. GM should do the 60 day across the board.

[377Z]

Originally Posted by drew630

If it's only still only 15 people or even a few more, GM should make this permanent, not a promotion.

I want to see whether the program generated a meaningful number of extra sales. 2002 Caddy brought up a good point in another thread regarding a month over month marketshare gain being the best indicator of the programs success--i.e. whether GM had a bump in marketshare versus rivals during the program timeframe. IMO there won't be a significant amount of import intenders that pulled into a GM showroom becuase of the program, who saw the light upon experiencing a test drive and opted for the $500 in lieu of the guarantee. I believe the # of guarantee takers will be an accurate indicator of the programs success. We'll have to see the numbers to see if I'm right or wrong.

Those numbers aren't out yet, but my gut feel is that the program didn't really change anythins since this is the second time GM has spun a claim that the program is working without actually focusing on anything meaningful.

[377Z]

Originally Posted by Buick61

Fewer than 500 people so far have opted for the guarantee.

Geeez, I hope for GM's sake that my presumption of the take rate is wrong then.

[1487]

Originally Posted by Buick61

Why does that ad compare the mid-level Camry to the top level Malibu? There's nearly $5,000 between starting prices for them.



Fewer than 500 people so far have opted for the guarantee.

Did you look at the ad? The stuff they are comparing has nothing to do with trim level. It just so happens that the pics are of an LE camry and LTZ Malibu.

[calgaryhhr]

If GM vehicles are really so good and customers like them so much I don't see why GM doesn't make this guarantee part of the GM company. Obviously it is something that no other automaker offers and it would speak volumes about GM quality.

[K Dawg ONE]

The program isnt really about how many have taken advantage of the program. The point of the whole campaign is that GM is putting its money where its mouth is. In fact, people opting for the $500 (not available here in Canada btw) is proof in itself that the customers are so sure that they are truly buying the Best Car that they dont even NEED to opt into the program.
Acura's recent ad campain touts them as the best of the luxory class for the past five years, but, what if after 35 days you dont agree? Too bad. Your stuck with it.
GM's program shows that GM is behind the products they are selling and are not relying on the viral chip on their shoulder like Lexus, Acura, BMW, etc. GM acted like this through the 60s, 70s, 80s, and even into the 90's and look where that got them.
Your 'name' and 'reputation' will carry you in the short term, but, its your product that will carrry you into the future...welcome to the New General Motors!

[calgaryhhr]

Originally Posted by K Dawg ONE

The program isnt really about how many have taken advantage of the program. The point of the whole campaign is that GM is putting its money where its mouth is. In fact, people opting for the $500 (not available here in Canada btw) is proof in itself that the customers are so sure that they are truly buying the Best Car that they dont even NEED to opt into the program.
Acura's recent ad campain touts them as the best of the luxory class for the past five years, but, what if after 35 days you dont agree? Too bad. Your stuck with it.
GM's program shows that GM is behind the products they are selling and are not relying on the viral chip on their shoulder like Lexus, Acura, BMW, etc. GM acted like this through the 60s, 70s, 80s, and even into the 90's and look where that got them.
Your 'name' and 'reputation' will carry you in the short term, but, its your product that will carrry you into the future...welcome to the New General Motors!

For most of the buyers they can't return their new GM vehicles after 35 days either (despite this program existing) because they took the $500 cash. GM should just scrap the $500 buy out and offer the 60 day guarantee for all purchases (like in Canada.)

It makes me wonder if we will see some numbers come out for how many vehicles are returned in Canada and how that percentage compares with the American numbers.

[wallus13]

Originally Posted by calgaryhhr

For most of the buyers they can't return their new GM vehicles after 35 days either (despite this program existing) because they took the $500 cash. GM should just scrap the $500 buy out and offer the 60 day guarantee for all purchases (like in Canada.)

It makes me wonder if we will see some numbers come out for how many vehicles are returned in Canada and how that percentage compares with the American numbers.

I prefer to keep the choice!

[BerettaZ]

Originally Posted by 1487

Did you look at the ad? The stuff they are comparing has nothing to do with trim level. It just so happens that the pics are of an LE camry and LTZ Malibu.

Well, to his point, the pic should be of a Malibu LT then, so people don't get the impression GM is comparing apples to oranges.

[Buick61]

Originally Posted by 1487

Did you look at the ad? The stuff they are comparing has nothing to do with trim level. It just so happens that the pics are of an LE camry and LTZ Malibu.

Why do people say such condescending things on the internet. Obviously I looked at the ad. They're comparing more than just the specs, sir. They PHOTOS themselves are part of the comparison, and they picked a top-level Malibu to flash its goods, why not give the Camry the same treatment? They didn't even choose one that has fog lights!

Originally Posted by BerettaZ

Well, to his point, the pic should be of a Malibu LT then, so people don't get the impression GM is comparing apples to oranges.

Thanks.

[joemac]

Originally Posted by Buick61

They're comparing more than just the specs, sir. They PHOTOS themselves are part of the comparison, and they picked a top-level Malibu to flash its goods, why not give the Camry the same treatment? They didn't even choose one that has fog lights!

It's called marketing. It's not a fairness contest. It happens a million times a day in the news paper, TV, magazine, internet, and radio advertisements. Make ones product look best or better than the competition. GM is not flying solo down this path.