FOR RELEASE: 2005-07-05
GM Employee Discount for Everyone Returns
Offer Available Through Aug. 1 on 2005 Models
DETROIT – General Motors today announced the return of its ‘GM Employee Discount for Everyone’ marketing program. GM is continuing the offer of its employee discount to everyone who takes delivery of a new 2005 GM car or truck from July 6 through Aug. 1, 2005.
“The ‘GM Employee Discount for Everyone’ has been an effective way for us to continue to tell consumers about the great value represented in our cars and trucks,” said Pete Gerosa, GM North America vice president, Field Sales, Service and Parts. “With 20 models that achieve at least 30 miles-per-gallon fuel economy on the highway; eight ‘Most Dependable’ awards in the recently-announced 2005 J.D. Power and Associates Vehicle Dependability Study; and the security of OnStar on 54 of our models, there are plenty of good reasons right now to purchase or lease a GM car or truck.”
The eight ‘Most Dependable’ awards in the J.D. Power and Associates 2005 Vehicle Dependability Study (VDS) are: Chevrolet Prizm (Compact Car), Chevrolet Malibu (Entry Midsize Car), Buick Century (Premium Midsize Car), Buick LeSabre (Full-size Car), Chevrolet S-10 Pickup (Midsize Pickup), Cadillac Escalade EXT (Light Duty Full-size Pickup), Chevrolet Silverado HD (Heavy Duty Full-size Pickup) and GMC Yukon/Yukon XL (Full-size SUV).
As with the June program, the July offer gives consumers an opportunity to pay the price a GM employee pays for a 2005 model year vehicle, including available rebates, but excluding taxes, title and dealer fees. Prices are prominently displayed on eligible vehicles at participating GM dealers and available on www.gmbuypower.com.
“We were really pleased by the consumer and dealer response to our ‘Employee Discount’ program in June,” Gerosa added. “Consumers told us that the simplicity and transparency
of the program along with the clearly compelling employee price is a great idea. Buyers
liked the fact that they could easily identify the employee discount price either at their local GM dealer or on our website, and our dealers, who enthusiastically support this program, told us that it drove a lot of new customers into their showrooms.”
The ‘GM Employee Discount for Everyone’ includes all 2005 GM cars and trucks, except for Chevrolet Corvette, Pontiac GTO and all medium duty trucks and is compatible with most other incentives currently available.
The program will be supported by some new broadcast, print and online advertising featuring GM employees.
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-----The orginal Mr.Goodwrench on the JBO since 11/99-----
gotta do what you gotta do to get sales
Not if it involves driving your company into the ground.
I really hope the people buying these cars because they're cheap will come back when they need another one and pay regular price. GM must be praying they LOVE their new GM vehicles!!
Actually GM is still turning a profit! 30% more sales, and the cars still cost more than they would with all the rebates previously applicable...
my family had a new malibu as a rental for our trip to new york, and i must say i was very impressed with it. it was a base model, ecotec, and that car was a really nice drive. i imagine with the 6 cylinder it would be a decently quick car.
Almost all of the growth came from light truck sales, which jumped 69.2 percent to 375,092 vehicles. The Colorado, Equinox, Tahoe and Trailblazer models posted some of the largest sales increases
that was on the yahoo news brief about this
all small suvs , except the tahoe
i knew they would extend it , or atleast offer something similar
Correction, sales didnt go up 30%...went up 41.3%...
89Sunbird wrote:Correction, sales didnt go up 30%...went up 41.3%...
more sales does not necessarily mean more profit
my friend sold a $55,000 chevy tahoe the other day and only made $112 profit vs the $300.00+ she usually makes at the dealership. BUT keep in mind they are selling twice the amount of vehicles
TURBO KIT...$4,000
RUNNING 20 PSI...ANOTHER $2,000
SMOKING THE TIRES ON A 3RD GEAR ROLL...PRICELESS
That's funny that it's extended...
My dad stopped by a dealership to check out a G6 for his girlfriend on Monday and the guy was willing to go pick up the exact car she wanted if he would take it for her to drive later. He kept emphasizing that she had to take delivery by Tuesday (the 5th) to get the employee pricing as his main pressure to get her in it.
themarin8r wrote:89Sunbird wrote:Correction, sales didnt go up 30%...went up 41.3%...
more sales does not necessarily mean more profit
Still making more profit than Dodge is.
honestly i dont think there loosing to much money.....because before this they were giving huge rebates on some cars/trucks
my friend bought a base model cobalt during this whole GM discount thing, had a spoiler, auto, and a few other options and he still paid 14,100 for it.....that sounds like GM's still makin a decent profit off the cars there selling....
and honestly like brown eye said about the malibu some of GM's new models ARE pretty nice, and would make some of those consumers to come back and buy another GM vehicle
however after aug they need to stop it for good, dont want to play it out....
*cheers*
<img src="http://www.student.ipfw.edu/~poolev01/misc/allyourbasesig.jpg">
it is true that right when this program came on the rebates took a nose dive. so it must balance out somewhat. They aren't doing it to lose money, that's for sure!
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Words that you can't use in modding: Finished, Perfect, Cheap.
Most of what they have is cheap unibody FWD. Remember that MSRP is raping you for what the car is. They can sell below that turn a profit but have many expenses to write off and make it look like they aren't doing as good as they really are.
Everyone is still getting paid. They have the money for more research and manufacturing. GM will not die out. They can still cut a lot of other things if things go bad.
Remember GM funds research, goodwill, enviromental, and many others...
So, it is true that many of the rebates came off when the employee discount was offered. I checked on the price of a Cobalt before and after with Supplier discount and I didn't save much more either way.
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WWW.BEIRUTNIGHTS.COM WWW.DI.FM
and i heard today that FORD is countering with employee price and rebates
Here is the the kicker, the employee pricing promotion did little to affect June sales of Asian brands, which continued to climb.
Quote:
it is true that right when this program came on the rebates took a nose dive. so it must balance out somewhat. They aren't doing it to lose money, that's for sure!
That is true, they aren't. It will be stupid of them if they will too.
As a consmer's point of view.
GM Employee Pricing actually will cost you a little more then the previous rebates. Simply because the dealer's kickbacks and the other minor factory rebates does not apply to the employee pricing.
For the manufacturer's point of view.
It was succesful, (unit sales wise). Profits were made, but nowhere near the level if they sold on MSRP. GM spent an average of $4,500 per vehicle on incentives in June, which is up $449 from May with no employee discount.
Is/was it succesful?
It depends on who you speak too.
But from the moment this pricing plan did not do a dent to the Asian manufacture's sales, this program becomes iffy. And the stigma that; "GM needs to sell on rebates," continues.
Competition's point of view:
GM in most cases does not have an exceptional and class leading products nor products what the public demands in their portfolio. Which in return consumers take notice and purchase the competition hence special pricing appears to sell GM products.
Either cut back on rebates and bring class standard and demanded products. Or continue what they carry and continue on the rebates and special pricing.
Its either or.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Problem is in my opinion and of many i know is they don't think Gm build anything as good as imports....weather they do or don't. I personally think they don't, i think they're new products are just polished turds. they look great and appear better, but are sure they are still the same sucky build quality and of course the number one thing that kills it for me right away is that they may have made baby steps in the quality of their product but their service and customer service are still the $hittest on the planet. And why take the chance of buying a supposed better product and still get treated like a peice of crap whenever you go to get it serviced.
with that said, i'll get back to my point. if GM can afford to sell them this cheap and still turn profit. the opinion of many is why would they go back and pay full price? it's obvious now that they can sell a cobalt for x amount why in a few years would i go back and buy the SAME car for $4000 more? I under stand it's a promotion but it makes people think, it just shows you how much GM and the dealers mark it up as the MSRP and then dealer fees. If peole know how much GM really sells them for, why would anyone ever buy full MSRP ever again?
i think this promotion was a bad idea. And in turn just put GM in a worse spot when the time comes to go full price. they should just take the discount price and the full MSRP find a realistic middle ground and do one size fits all pricing like saturn. i feel it's the only way they will survive. because they now let everyone know they WAYYYY overpaid on they're vehicles before this promotion, and rebates just continue to dig a hole.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
has anyone noticed that ford AND chriysler have BOTH rolled out these employee pricing things? it must have been doind something for GM if the big 3 are all now doing this tupe of promotion
Sales are up, prices on cheap cars are up from the prices offered in May, everybody should offer employee pricing until the novelty wears off. On a Sunfire or Cobalt, the employee price is very close to invoice. I figure on paying invoice for a car on the lot or 1-2% less for a car I order, so employee pricing doesn't really gain me anything, but the loss of that $1000 hot button bonus cash is something I notice. Back in May, I had a dealer offer me a 1SV Sunfire plus $290 worth of aftermarket cruise control for $11,430 less $1000 rebate, net $10,430. That was the dealer's initial offer. Try to match that this month.
The good part is no-haggling, and getting the sales price closer to the real price. Michigan charges tax on the rebates too, so a $15,000 car with $3,000 rebate costs more than a $12,000 car due to $180 extra sales tax on the $3,000.
