Report: GM Looking To Boost July Sales; Will Broaden Employee Discounts

[Perian]

Link: www.wsj.com

By JOHN D. STOLL
July 25, 2008 11:26 a.m.

DETROIT -- General Motors Corp., hoping to boost demand amid a drastic downturn in the U.S. auto industry, will offer employee discounts to nonemployees on a limited basis.

GM Sales Chief Mark LaNeve rolled out the plan in an email to employees late Thursday. Employees can give one employee discount away between now and the end of July, a GM spokeswoman said.

"During this challenging period for people across the country, there's no better time than to talk up our great products and give someone you know an additional incentive to buy GM," he said.

The spokeswoman said GM does not routinely offer this type of incentive. "It's a perfect opportunity to pass this on."

GM is already offering attractive discounts and financing plans on most of its vehicles in July as it struggles to rebound from deep sales declines in the first half of 2008.

"I'm counting on your help in giving us a strong close on our July vehicle sales," Mr. LaNeve said.

[Perian]

Let's hope they don't go all the way.

[Ambalanche]

Interesting.

[tirediron]

I posted this yesterday.

"Employee Pricing to Everyone GMS and Below"

[tgagneguam]

Is this another case of short-term gain for long-term pain?

Come on, Detroit, you're better than this!

[2000GTPBROTHER]

How would you like to be an employee that shows up for work on Monday August 4th, and there isn't a check mark next to your name for your one sale?

[logansowner]

Why not make fewer vehicles and turn a profit, rather than making 9 million vehicles and giving them away?

[armycam68]

So, how do I get this discout? Should I drive out to Lordstown, Ohio and stand around the gate begging for a discount?
I hope that GM chokes on that new Corvette that I've been looking at!
Good Luck!

[mcool]

Originally Posted by logansowner

Why not make fewer vehicles and turn a profit, rather than making 9 million vehicles and giving them away?

GM would if they could, but they have such an overhead beast to support that a certain amount of "keeping the metal moving" is necessary to keep from paying employees not to work etc.

[joemac]

Originally Posted by logansowner

Why not make fewer vehicles and turn a profit, rather than making 9 million vehicles and giving them away?

GM has many contractual obligations (suppliers/labor) that for the most part in are considered fixed cost. With a fixed cost model only thing producing less volume does is negatively affect revenue.

[1999 White C5 Coupe]

Originally Posted by logansowner

Why not make fewer vehicles and turn a profit, rather than making 9 million vehicles and giving them away?

Attracting (and hopefully keeping) customers from other brands.

Future parts sales.

Future service.

Future purchases of new vehicles.

Puts more vehicles "on the street" for people to see.

Other sales - such as accessories, GMPP, financing, etc.

Etc. etc. etc.

[Smoke]

Originally Posted by 1999 White C5 Coupe

Attracting (and hopefully keeping) customers from other brands.

Future parts sales.

Future service.

Future purchases of new vehicles.

Puts more vehicles "on the street" for people to see.

Other sales - such as accessories, GMPP, financing, etc.

Etc. etc. etc.

Well put.

[gardnet1]

Someone send me an employee pricing voucher.

[ProjectRS]

How much will I save on a fully loaded 2009 Cobalt SS Turbo?

[logansowner]

Originally Posted by ProjectRS

How much will I save on a fully loaded 2009 Cobalt SS Turbo?

Probably nothing. They aren't giving away cars that people can't get enough of. You're looking at sticker and for low allocation dealerships, maybe markup.