Will July Bring The Return Of "Employee Discount" Incentives?

[Perian]

Link: http://www.detnews.com/apps/pbcs.dll...606170378/1148

David Healy, a Burnham Securities analyst in Sierra Vista, Arizona, said he expects Chrysler to be the first to revive the employee-discount programs offered by U.S. automakers last year, or to provide no-interest financing on all cars and trucks.

"They may have to at least go with zero interest across the board," he said. "They've got a lot of vehicles that have been on dealer lots a long time and they have to move them."

Chrysler has used no-interest loans on some vehicles, as well as $1,000 cash for dealers on cars and trucks that have sat on their lots since before Dec. 31. The dealer program ends this month.

As much as 10 percent of the inventory on Chrysler, Jeep and Dodge dealers' lots may be vehicles they've had since the end of 2005, according to David Lucas, an analyst at Autodata Corp. in Woodcliff Lake, New Jersey.

[Perian]

It's easy to say "Don't do it"; but something has got to give.

There's just too much iron on the ground.


Long story short:
Looking to buy a car? You may want to wait two weeks.

[grayhorse]

Chrysler has started already the "zero interest" program since from the start of 2006, and Ford started last month the "drive with us".

[Perian]

Originally Posted by grayhorse

Chrysler has started already the "zero interest" program since from the start of 2006, and Ford started last month the "drive with us".

Point well taken, however neither program seems to be doing much.

The public has been educated to expect the Employee Discount.

Hindsight is 20-20; but GM made a HUGE mistake last summer.

[XCR440SP]

I'm not sure if they'll come or not, but I am sure that all three have their programs ready so if someone does it all three will be ready with a program. Don't look for anyone to get a month a head like GM did last year.

[Driveshaft]

Good balls I hope not. That's not how GM needs to move product.

[Cortazzo]

I know autoextremist.com has made a big deal about DCX's inventory issues. They have a lot of stale product, their midsize sedans are the worst offenders. And their great LX cars and the caliber just aren't THAT big a part of their product mix to keep things moving. Once their new midsizers come out, that should be a big help. The one thing that never really impressed me about DCX vehicles (hemi excluded) was their powertrain lineup. Lumps like the 4.7l v8 just aren't really that competitive anymore, and there is nothing particularly sexy about any of their other engines either (except Hemi). Everything else is midpack in economy and power. Not that Chevy or Ford have anything uber exotic save for the mustang's 4.6 or chevy's smallblock. I think a small displacement version of the LSx or Hemi in place of a larger v6 to compete with toyota's 280hp 3.5 and Nissans 300hp VQ would be something that would get people's attention.

[MOOSTOPHA]

god i hope they don't start that employee price crap again. last summer was great, but it's been a nightmare since then. they need to keep heading the direction they're going in now. keep good solid product coming and we'll be ok. let the product be it's own deal. we need some more hits like the hhr. it's selling as fast as we can get 'em with no rebate at all.

[SobeSVT]

I think that the automakers know better by now. I think that this article is just an attempt to make news out no non-news.

I remember last July when everybody was celebrating GMs "Employee Discount" program, I was verbally stoned by some members when I pointed out the horrible effect that it would have in the subsequent months. Needless to say sales figures after the program was over and 10+ billion dollars in loses proved me right.

Frankly, I don't see it hapening again. I hope I am not confusing my hopes with reality.

[mjd1001]

I am not a big fan of the "employee discount" programs or other massive discount programs.

HOWEVER, with that said, it doesn't bother me in the least to use them IF they are used at the very end of a model run, in order to push 06 inventory off the lots when 07 inventory is already arriving.

This is especially the case when the new model year inventory has significant improvements. The G6 GTP getting the 3.6 engine and 6 speed auto is one example. Another would be when a car gets either a total redesign (like the Tahoe this year) or even a 'refresh' (the Monte Carlo/Impala last year).

[mbukukanyau]

Toyota is already having its sellathon in southern california

[cadillacpimpin]

i can see it now: "Employee Pricing For All"*

*Offer valid only for those who trade in a new or used non domestic vehicle

[tgagneguam]

The real test of GM's commitment to value pricing apparently will come this summer. I wonder how the folks at the General will balance short-term gains for longterm interests. My hope is that if Employee Discounting is used, GM applies the promotion judiciously; as others have said, applying it to end-of-cycle models and training customers that hot product will come at a cost (and a profit for GM) seems to be the best compromise. I cannot imagine how GM will address its image as a purveyor of discounted, second-rate cars if it cannot commit to a longerterm strategy of demanding that customers pay appropriately for its products.

And I say this as someone who definitely appreciate GM's dire fixed-cost situation.

[give_it_all_]

Rick Wagoner said they will not do that again. But he also said they will do something to match competitors incentives. They already are doing 0% in Canada, maybe that's coming down to the US.

[A Bum In A Bus]

There is no backlog of Buick Lucernes. I was looking on the internet yesterday for my sister and there are very few around. To get the color she wants she will have to order. One dealer in a town of 25,000 had 0 Lucernes, and most had only 1 or 2. When a city of 250,000 with a much larger metropolitan area(650,000), only list 9 Buick Lucernes, that is low inventory.