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GM: Sales Incentives Are Working

2K views 24 replies 21 participants last post by  Timekeeper 
#1 ·
http://online.wsj.com/article/SB122044441755894837.html?mod=hpp_us_whats_news

General Motors Corp. on Wednesday said it will extend its Employee-Discount-For-Everyone deals through the end of September, citing a strong response to the incentive program.

GM launched the deals on about a half-dozen 2009 models and most 2008 models in the middle of August to boost sagging demand for trucks and SUVs. For September, GM will increased the number of 2009 models carrying the discounts to 80% of the portfolio, GM spokesman John McDonald said.

"We're seeing strong customer response and the dealers have been really enthusiastic," Mr. McDonald said.
 
#6 · (Edited)
Should GM kill every niche car then? Goodbye Corvette, goodbye Camaro, goodbye G8, goodbye Saab, and might as well kill the Volt as well before it goes into production. Niche vehicles serve their purpose. If GM went the way of Toyota, I would never buy GM. Only thing on Toyota's mind is volume, volume, volume. If it won't sell in huge numbers it won't go into production. That is why they have no products that interest me. They do not have the Supra anymore or the Celica, etc. All boring volume machines.

Lutz green lighted the project because it was needed to do so to help prop up GM's image. Even if it meant a loss. The Volt is in the same situation. It will help GM's image even though GM will be losing money on it.

Typical fans of any company as well. When the product comes out and initially is a success they all go, " YAAA!! XYZ company rules!". But, then when the XYZ's product eventually stalls, the fans turn and go, " Who was the idiot that green lighted the product?"
 
#7 ·
That is great that the incentives are working, but does that mean they should use them? I don't know. I know times are tough now and auto sales are meh at best, but bringing back the Employee Discount crap again is probably taking things too far. I just hope they do not get people immune to buying GM products because of steep discounts. At that rate, we will be back to square one. GM was just starting to establish a sense of value within their products without incentives.
 
#9 ·
Understood, but with the shape of the economy and the auto sales decline as a whole what choice does GM really have? The competition is also making the public aware of steep discounts and year-end type clearance events so why does GM keep getting ***** for it?? Should they have called it something other then an employee discount? Perhaps, something more appropriate such as "The economy is tanking, gas prices are out of control, and the forseable future looks dim discount for everyone".

GM needs to ride the wave until it crashes or until they get back on their feet. They need to move product and unfortunatley great product is not the only thing that moves metal these days.

I believe the last employee discount in 2005 was to move alot of mediocre metal--today they have a much better crop of vehicles but becuase of the tide turning agianst SUV's and the state of the economy, GM is once again forced to make such a move.
 
#10 ·
You can't put a car into production that you're going to lose $10 grand per unit on. And you don't have to build cookie cutter cars to do that.

Corvette may not make a huge profit, but it doesn't lose money like that.

Even Prius, which has the rep of being subsidized by the Japanese Govt, doesn't lose $10 grand a car. And Prius sales are probably ten times what Solstice/Sky is.
 
#13 ·
I'm sure GM still makes money even at Employee Pricing. And it wouldn't surprise me if there are fewer other incentives, meaning things even out more or less.

Of course, a dealer can tell us whether Employee Pricing can be combined with any other incentives.
 
#17 ·
I agree. If you want to haggle, go find a Ford or Dodge dealer. If you want a great price, haggle-free, go to GM (not just Saturn). A slightly lower retail price that sells more cars sonds like a no-brainer.
 
#15 ·
The other thing that people don't seem to catch on to, is that GM needs to keep not only their own plants busy, but they've got to come up with work for their suppliers as well. They'd much rather eat into their own profits a little bit, then have more suppliers declare bankruptcy and then have to bail them out with $100 million each or whatever the going rate is now. That's the reason why this is such a big mess, GM's current situation goes way beyond themselves.
 
#19 ·
MrCritical nailed a home run..... I sure hope GM's management is watching.

This is nothing more than short term gain for long term pain. GM is bringing consumers into the market who in many cases will be locked into their vehicles for 6 years or longer. Let's be honest, how many of us are keeping our GM vehicles longer? I know I am. I upgraded almost annually yet here I am driving a 2004 Envoy that given current resale values and my vehicle options, I may keep for another 2 years or longer.

As a GM consumer I now understand the strategy, buy only when the vehicles are significantly discounted (read..programs) and keep for many years as your new GM product will depreciate like a rock.
 
#21 ·
Here is something no one will want to talk about:

SATURN outsold Buick, Cadillac, Saab, Hummer and was less pretty close to Pontiac.
SATURN had the smallest year over year decrease of ALL gm divisions. Down only 3.3%
SATURN finally sold some Astras... almost 2,000! Thank god.
SATURN VUE sales up 46% to 9,649 units.

SATURN with a tiny dealer network, no haggle pricing and highest conquest sales of folks who normally wouldn't be buying American maybe isn't doing bad for itself.

Maybe killing Saturn for the benefit of Pontiac (which hasn't had a really good decade since the mid 60's to mid 70's) isn't such a smart move.
 
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