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GM returns to employee discounts

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GM returns to employee discounts

Old 11-12-05, 02:50 PM
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GM returns to employee discounts

DETROIT (Reuters) - General Motors Corp. plans to launch a "red-tag sale" Sunday that will allow anyone in the United States to buy vehicles at the same price employees of GM's auto parts suppliers pay, GM dealers told Reuters.

The discounts, which will last through Jan. 3, will be available on all 2005 and 2006 Chevrolet, Pontiac, Buick and GMC models except the Chevrolet Corvette, Buick Lucerne and the Pontiac Solstice, dealers said.

A GM (Research) spokeswoman declined comment.




GM, the world's largest auto maker, has been struggling with slumping sales following a highly-publicized summer employee discount program, which pulled many potential car buyers into the market earlier than they might have been otherwise.

Dealers said the new program offers bigger savings than the employee discount program because it includes larger overall discounts.
Old 11-12-05, 02:55 PM
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I think they should go with the subscription model - give the cars away for free and then just charge a monthly service fee. That's where it looks like it's going anyways, the market is so bad. Since when do cars come with 8000 cash back (as I saw on a commercial recently in Houston)?
Old 11-12-05, 02:56 PM
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Originally Posted by Erasmus
I think they should go with the subscription model - give the cars away for free and then just charge a monthly service fee. That's where it looks like it's going anyways, the market is so bad. Since when do cars come with 8000 cash back (as I saw on a commercial recently in Houston)?

All they are doing is killing the resale value of the cars. They should focus on building a better product.
Old 11-12-05, 03:18 PM
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i really don't need another Escalade ...
Old 11-12-05, 03:20 PM
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Originally Posted by BigPete
i really don't need another Escalade ...




But it's new.
Old 11-12-05, 03:26 PM
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What really confuses me is why the hell they can't figure out how to make a modestly equipped 2wd, automatic, extended cab Colorado and sell it for $17k. If they could hit that price point, they'd sell like hot cakes. As it was back in August, there was merely $1-2k in difference between a mini and a full sized truck. In my twisted world view, there should be a much larger gap.
Old 11-12-05, 04:02 PM
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I give GM 5 years.
Old 11-12-05, 06:59 PM
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Digging a hole even deeper for GM.

They will be in Chapter 11 before June 2007.
Old 11-12-05, 11:03 PM
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Wonder if this will be extended to Saab again. I'd been mildly contemplating trading in my Outback Sport for a WRX but if I could get a good enough deal on a Saab 9-2X maybe I'll actually do it.
Old 11-13-05, 08:54 AM
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Originally Posted by TracerBullet
I give GM 5 years.
Interesting...I was thinking almost the same thing. They really seem to be in trouble. I read where they made a deal with the UAW to reduce health benefits and it will save them like a billion a year, but evidently folks are saying that is just the start of what is needed.

What is interesting is how Toyota is doing so well by doing what GM did in the past: have a ton of different cars, models, trims ect, so there is a car available for every person at every price point. Of course most would argue the Toyota is a better built car overall (though I recently rented a Tahoe, and was very impressed).

I think I have said it before, but GM needs to be careful that they don't become a "Domino's Pizza" where no one will buy their product if there is not a coupon or deal.
Old 11-19-05, 11:52 AM
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DETROIT (Reuters) - DaimlerChrysler's Chrysler division said Thursday it was raising its consumer incentives in a bid to offset slowing U.S. vehicle sales.

The move follows sweeter incentive offers announced earlier this week by General Motors Corp. and Ford Motor Co. as Detroit's price war heats up again as part of a traditional year-end sales push.

Chrysler spokesman Kevin McCormick said that starting next Monday the automaker would offer U.S. car buyers a debit card with $2,367 in credit to use toward the purchase of gasoline.

He said Chrysler would also begin offering car buyers free scheduled maintenance and an extended five-year, or 60,000-mile warranty. The new incentives will remain on offer through Jan. 3, McCormick said.



DETROIT (Reuters) - Ford Motor Co. said Wednesday it will offer a new incentive program that cuts thousands of dollars off most of its new cars and trucks.

The new incentives follow crosstown rival General Motors Corp.'s "Red Tag" sale, which allows anyone in the United States to buy vehicles at the same price employees of GM's auto parts suppliers pay. GM, which announced the deal on Monday, has led Detroit's profit-draining price war for four years.

Ford's program, called the "Keep It Simple" plan, will be available through January 3. It comes after Ford and GM suffered a 23-percent decline in U.S. October sales and lost market share to Japanese rivals.

The sale includes all 2005 and 2006 models, except the Ford Fusion, Lincoln Zephyr, Mercury Milan, Ford Mustang and Ford GT.

Related news:
Old 11-19-05, 12:32 PM
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Perhaps they should get rid of the tradtional dealerships that make millions a year, saving the consumer money while making them money, and improving peoples overall enjoyment of buying a new car.
Old 11-19-05, 12:57 PM
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The one thing that pisses me off about these sales is that just about any car I would actually consider buying is exempt from the discount.
Old 11-19-05, 01:48 PM
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Discount or no discount, they're no match for Toyota, Honda, and Nissan.
Old 11-19-05, 02:37 PM
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Originally Posted by Cusm
Perhaps they should get rid of the tradtional dealerships that make millions a year, saving the consumer money while making them money, and improving peoples overall enjoyment of buying a new car.
Where would one buy the cars? It would be a huge outlay of money for them to own all the dealerships. Although, it would be interesting if you could just order then online and have them delivered, but most people want to test drive cars first. I have never really needed to test drive anything. I go to the auto show to see how they feel, and figure that is the most important thing. But dealers freak when you tell them you don't need to test drive it.
Old 11-19-05, 03:50 PM
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GM will be filing for bankruptcy sometime next year.
Old 11-19-05, 03:55 PM
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Originally Posted by kvrdave
Where would one buy the cars? It would be a huge outlay of money for them to own all the dealerships. Although, it would be interesting if you could just order then online and have them delivered, but most people want to test drive cars first. I have never really needed to test drive anything. I go to the auto show to see how they feel, and figure that is the most important thing. But dealers freak when you tell them you don't need to test drive it.
IIRC, one of the auto manufacturers tried direct-to-the-consumer sales in Texas a few years back and had the crap sued out of them by the dealers.

I like the employee pricing deal. I absolutely hate car dealerships and would love to see them move to a fixed price business model (similar to Scion, Saturn, etc). It's not the negotiating I hate, it's the fact that dealerships make $10,000+ off of some people by basically tricking them.
Old 11-20-05, 12:56 AM
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Originally Posted by kvrdave
Where would one buy the cars? It would be a huge outlay of money for them to own all the dealerships. Although, it would be interesting if you could just order then online and have them delivered, but most people want to test drive cars first. I have never really needed to test drive anything. I go to the auto show to see how they feel, and figure that is the most important thing. But dealers freak when you tell them you don't need to test drive it.
IIRC Europe, and possibly Japan, do not have tradional US dealerships, they are test drive locations and ordering locations. As stated above there are examples of US dealerships not operating like the majority, and they seem to be doing well. Stealerships would still exist for used cars and one would probably have to still contend with them for trade ins, but when I have shopped for a car the times I have gone to one pricing places it has been so nice and it is an environment I would not mind returning to. As it is now I hate the idea of needing a new car, one for the price and 2 for dealing with the sleaziest individuals on the planet (or perhaps second behind funeral homes).
Old 11-20-05, 01:12 AM
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I was reading an interesting article about the state of car manufacturers the other day. Basically, the US makers have a lot of retired employees drawing pensions and possibly health benefits, really expensive. Foreign makers, even with factories in the US, don't have the large number of retired employees thus can offer a better car for the same price.

What I see happening is not necessarily bankruptcy, but concessions on pensions / health benefits for retired employees (or certainly for current employees). Kind of like what's happened in the airline industry.
Old 11-20-05, 01:57 PM
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Originally Posted by kvrdave
Although, it would be interesting if you could just order then online and have them delivered, but most people want to test drive cars first. I have never really needed to test drive anything.
IMHO a dealership test drive is just about a total waste of time. Unless you just want some simple things like to see how high or low you sit in the car, the size of the trunk or other simple things. But most of this information can be found on line. And even then don't know how much it helps. So what if the trunk looks big, what happens when you try to put luggage in it? Or even grocery bags.

I'm always testing out cars. How? Rental's. I have rented large SUV's for weekend trip, or when company comes to town. I have rented a Volvo for three days to see the fit and finish and how it holds groceries. I have rented a Maxima for the weekend to let my wife try it out and head to the grocery store, pick up the kids, etc. Then when I need a rent car for work I try to only rent a car I'm interesting in purchasing. For example, I was able to spend three days in one of the newer Jeeps, and quickly decided it wasn't for me (it was that small SUV one, not a wrangler).
Old 11-20-05, 03:03 PM
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Originally Posted by Sdallnct
I'm always testing out cars. How? Rental's. I have rented large SUV's for weekend trip, or when company comes to town. I have rented a Volvo for three days to see the fit and finish and how it holds groceries. I have rented a Maxima for the weekend to let my wife try it out and head to the grocery store, pick up the kids, etc. Then when I need a rent car for work I try to only rent a car I'm interesting in purchasing. For example, I was able to spend three days in one of the newer Jeeps, and quickly decided it wasn't for me (it was that small SUV one, not a wrangler).
Eh, I wish I could do this. Unfortunately, they very few places rent the cars that I considering buying. Sometimes it works out though. The little woman wanted a Pathfinder for the longest time... until we rented a Highlander. That was our first time with Hertz, so maybe we'll do better there than with Enterprise, where a "luxury" car is a mustang.
Old 11-20-05, 03:20 PM
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Really? I've had excellent luck with Enterprise ... they've given me a Murano, an FX45(?), Volvos, a fully loaded F250 Laredo Crew Cab, etc.

Hertz is the one that always gives me shitty, old rides around here.
Old 11-20-05, 03:49 PM
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Enterprise gave me a Magnum while my 300C was in the shop, so they have more than what is on their website.
Old 11-20-05, 05:43 PM
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Another way is to make your reservations early. I almost always use Enterprise and for the heck of it I rented a Tahoe nearly 8 weeks ago for Thanksgiving. Figure it will be nice have a big car around and this is the 2nd time I have rented one to see how I like. My wife wants to see just how bad the gas mileage is....
Old 11-20-05, 05:48 PM
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Originally Posted by Sdallnct
What is interesting is how Toyota is doing so well by doing what GM did in the past: have a ton of different cars, models, trims ect, so there is a car available for every person at every price point. Of course most would argue the Toyota is a better built car overall (though I recently rented a Tahoe, and was very impressed).
Toyota, like its customers, gets a great value for all of its expenditures. I remember reading a WSJ article about five years ago where Toyota was building/taking over a plant in the US. The president was touring it and saw a $25,000+ machine which dried a part of the car (possibly after painting). He asked why a normal hair dryer couldn't do the same job. It turned out it could.

(I don't remember the exact details but that is the gist of the story).

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