[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]

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]

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]

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]

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]

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.

 

[Ronald McChevy]

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

It only works on 2008 models.

I just priced a 2008 online and the MSRP (fully loaded) is $24,225. The GMS price is $22,292, so you save almost $2000.

There is also $1500 cash back, so the final price is $20,792.

 

[K Dawg ONE]

FWIW, I called GM Drive here in Canada to see if an Active US Employee can sponsor a friend or neighbour here in Canada for this promotion and THEY CAN NOT! Any obtained GMS incentive code will NOT be honoured and any dealer using the US GMS number will be CHARGED BACK.

However, as its always been, a US GM Employee can sponsor a 'linear' Canadian family member for the GM Employee Purchase Program for both Option 1 and Option 2.

 

[DirtyMoney]

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

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

Happens every year to clear the lots for the new year model.

 

[windvale]

I wouldn't wish an Aveo on an enemy, much less a friend...

 

[adplusone]

Thanks GM for NOTHING!

I am ready to buy a new Corvette tonight - I know where it is - but I do not know a GM employee to beg, borrow or pay off for their "pricing voucher".

Guess this is like the GM Card "Top Off" rebates that somehow my account never gets called out....I have $ 3,500 just sitting there...

I have bought 10 GM products in the past nine years....

This new "GM pass it down" promo is just another attempt to leave us current GM customers holding...holding NOTHING

Thank your GM for rewarding my years of purchases..

Guess I am headed to my local Porsche dealer...see what they have.