Employee Discount Program News **GM extends program through Sept. (page 3)**
07-27-2005, 07:50 AM
#41
Race Director
DETROIT - General Motors will end its successful “employee discounts for everyone” promotion on Aug 1, according to a report in Wednesday’s edition of The Wall Street Journal. The automaker will then begin a new pricing strategy for 2006 models, focusing on permanently lower sticker prices instead of big rebates.
It was not clear whether rival automakers Ford and DaimlerChrysler, which followed GM’s lead with their own employee-discount offers in July after GM reported a June sales surge, will also opt to copy the firm’s change of tack on discounts.
According to the Journal, a GM spokesman said the employee-discount plan, which began on June 1, has been so successful and has driven so many auto sales that the company doesn’t have enough vehicles in stock to continue the program, and so plans to suspend it on Aug. 1.
It was not clear whether rival automakers Ford and DaimlerChrysler, which followed GM’s lead with their own employee-discount offers in July after GM reported a June sales surge, will also opt to copy the firm’s change of tack on discounts.
According to the Journal, a GM spokesman said the employee-discount plan, which began on June 1, has been so successful and has driven so many auto sales that the company doesn’t have enough vehicles in stock to continue the program, and so plans to suspend it on Aug. 1.
07-27-2005, 08:59 PM
#43
I'm the Firestarter
Originally Posted by gavriil
Pontiac's sales continue to struggle despite employee pricing promotion - - JAMIE LAREAU | Automotive News - - Source: AUtoweek
"The product is too much like what GM already has," says an Ohio dealer who asked to not be identified. "It's still a good-quality product; it's just not as exciting as it used to be."
"The product is too much like what GM already has," says an Ohio dealer who asked to not be identified. "It's still a good-quality product; it's just not as exciting as it used to be."
07-27-2005, 09:41 PM
#44
I'm the Firestarter
Originally Posted by gavriil
Pontiac's sales continue to struggle despite employee pricing promotion - - JAMIE LAREAU | Automotive News - - Source: AUtoweek
One marketing expert questions some of Pontiac's moves. Although Pontiac gave away 276 G6s last September on Oprah Winfrey's TV talk show, the car still has poor product recognition, says Gordon Wangers, CEO of Automotive Marketing Consultants Inc. in Marina del Rey, Calif.
One marketing expert questions some of Pontiac's moves. Although Pontiac gave away 276 G6s last September on Oprah Winfrey's TV talk show, the car still has poor product recognition, says Gordon Wangers, CEO of Automotive Marketing Consultants Inc. in Marina del Rey, Calif.
07-27-2005, 09:49 PM
#45
I'm the Firestarter
Originally Posted by biker
DETROIT - General Motors will end its successful “employee discounts for everyone” promotion on Aug 1, according to a report in Wednesday’s edition of The Wall Street Journal. The automaker will then begin a new pricing strategy for 2006 models, focusing on permanently lower sticker prices instead of big rebates.
Another bleak facet of that is that by lowering their sticker prices by a lot, they're essentially admitting that they're putting less money and less quality in their cars. Why can't they charge almost as much and actually USE that money on the car, instead of making a cheap-ass car.
07-28-2005, 09:40 AM
#46
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I think once GM stops it's sale, Ford and Chrysler will follow. They didn't want to do it in the first place, but I think their hands were forced by GM's success. If GM does lower it's prices, that's great. But they shouldn't have to give their cars away. DAMN. They're the largest car manufacturer in the world (atleast for now). Building world class cars should be a breeze to these guys. Building "global" cars should be a fuckin' breeze to these guys. If they get the product right, they won't have to entice with rebates, lower prices, etc.
08-03-2005, 10:50 AM
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GM Reverses On Discounts; Now Good Through Labor Day
GM Reverses On Discounts; Now Good Through Labor Day - - Source: The Car Connection
General Motors will offer its employee discounts through the Labor Day weekend after it initially had decided to end the program, the Detroit News reports. The company said on Tuesday, despite strong sales again in July, that it would offer employee discounts on its 2005 models through Sept. 6, the same date Ford Motor Company has announced for the end of its own similar program. Unlike Ford, GM is not offering the plan on its new 2006 models. GM's sales rose 47 percent in June thanks to the offering, which has shrunk its inventories of unsold 2005 vehicles to a two-week supply, the News adds.
08-03-2005, 10:52 AM
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I mean, at this point, one cannot take GM for its word, no matter who they are, what they say and what the matter is about. Redicilous, pathetic, unacceptable! This is not how a big company becomes a great company, an institution. That's how used car salesmen operate. I am totally starting to capitulate on this company alltogether.
08-03-2005, 11:30 AM
#49
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Originally Posted by titan
I agree with Wangers 100%. They really should have kept the Grand AM name. It defintiely would have been easier to improve the cars image than with the introduction of the "First ever G6," which was a crappy slogan anyway, IMO.
They ought to rename it "Grand AM," after all GM's never had a problem slaping a new name on the same car previously.
08-03-2005, 11:42 AM
#50
The sizzle in the Steak
Extending the program is horrible news for the long-term for GM.
When the program ends who is going to buy a GM car for +$5,000 or more than what they could have payed for it under the employee program?
People will not pay the "normal" prices when the program ends.
They will run to the competition.
When the program ends who is going to buy a GM car for +$5,000 or more than what they could have payed for it under the employee program?
People will not pay the "normal" prices when the program ends.
They will run to the competition.
08-03-2005, 01:59 PM
#55
Registered Abuser of VTEC
Originally Posted by MaximaPower
mayb their employee prices is what their sticker prices should have been all along
08-03-2005, 03:05 PM
#57
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Originally Posted by youngTL
Is this not what they're doing? Easing into the 2006 transition of lower sticker prices?
08-25-2005, 10:34 AM
#58
Safety Car
Extended Again & Now Includes Some 06
GM Discount Drives On
Automaker will extend marketing campaign until Sept. 30; will include some 2006 models.
August 25, 2005; Posted: 10:18 a.m. EDT (1418 GMT)
DETROIT (Reuters) - General Motors Corp. said Thursday it was extending the discount program under which it is selling anybody a new car or truck at the same low price a GM employee would pay. The program will continue through Sept. 30.
The wildly successful program, which GM introduced on June 1, had been set to expire on Sept. 6.
But GM spokeswoman Brenda Rios said it would continue through the end of next month. She added that it would now include some large pickups and sport utility vehicle from the 2006 model year. The program had previously been limited to 2005 model vehicles from the world's largest automaker.
Shares of GM (down $0.19 to $34.08, Research) edged higher in pre-market trading Thursday.
August 25, 2005; Posted: 10:18 a.m. EDT (1418 GMT)
DETROIT (Reuters) - General Motors Corp. said Thursday it was extending the discount program under which it is selling anybody a new car or truck at the same low price a GM employee would pay. The program will continue through Sept. 30.
The wildly successful program, which GM introduced on June 1, had been set to expire on Sept. 6.
But GM spokeswoman Brenda Rios said it would continue through the end of next month. She added that it would now include some large pickups and sport utility vehicle from the 2006 model year. The program had previously been limited to 2005 model vehicles from the world's largest automaker.
Shares of GM (down $0.19 to $34.08, Research) edged higher in pre-market trading Thursday.
08-25-2005, 12:13 PM
#59
Fahrvergnügen'd
I think it's obvious that GM needs to find a way to cut the cost levels on their cars without compromising performance to get them down to where the employee pricing levels are.
I'm sure I sound like a broken record but $8500 for a two-year old Pontiac Grand Prix GT (MSRP $24,700) is complete crap. Not that 19800 would have been a lot better but it wouldn't have been as bad a raping.
Until GM's cars stop having a precipitous devaluation I'm not going to consider anything but a Corvette or a V-Series Caddy from now on.
I'm sure I sound like a broken record but $8500 for a two-year old Pontiac Grand Prix GT (MSRP $24,700) is complete crap. Not that 19800 would have been a lot better but it wouldn't have been as bad a raping.
Until GM's cars stop having a precipitous devaluation I'm not going to consider anything but a Corvette or a V-Series Caddy from now on.
08-25-2005, 12:19 PM
#60
Not Asian
Originally Posted by charliemike
I think it's obvious that GM needs to find a way to cut the cost levels on their cars without compromising performance to get them down to where the employee pricing levels are.
I'm sure I sound like a broken record but $8500 for a two-year old Pontiac Grand Prix GT (MSRP $24,700) is complete crap. Not that 19800 would have been a lot better but it wouldn't have been as bad a raping.
Until GM's cars stop having a precipitous devaluation I'm not going to consider anything but a Corvette or a V-Series Caddy from now on.
I'm sure I sound like a broken record but $8500 for a two-year old Pontiac Grand Prix GT (MSRP $24,700) is complete crap. Not that 19800 would have been a lot better but it wouldn't have been as bad a raping.
Until GM's cars stop having a precipitous devaluation I'm not going to consider anything but a Corvette or a V-Series Caddy from now on.
08-26-2005, 09:39 PM
#63
I'm the Firestarter
Now we see just how _cheap_ these cars really are.
08-28-2005, 08:12 AM
#65
Senior Moderator
I've never understood how a company like GM can have such short term goals. Sure they are selling alot of cars now, but I'm sure they'll see their sales slow. They are robbing Peter to pay Paul... and that just doesn't work without putting future sales at risk. People who were thinking of buying a new GM product soon will buy now, but once the pricing return to normal, sales will tumble. Future customers will have already bought.
Another longterm goal that will be ruined is customer loyality... I know that if I bought a new Chevy truck before the "discounting" and suddenly I lost $5K in resale value due to discounting, I'd be pissed...
Another longterm goal that will be ruined is customer loyality... I know that if I bought a new Chevy truck before the "discounting" and suddenly I lost $5K in resale value due to discounting, I'd be pissed...
08-28-2005, 01:50 PM
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Originally Posted by GreenMonster
I've never understood how a company like GM can have such short term goals. ..
09-01-2005, 01:53 PM
#67
Safety Car
Monkey See Monkey Do
Ford Extends Discount thru September
By Dee-Ann Durbin, Associated Press
DETROIT — Ford (F) is extending its popular employee-pricing discount plan through Sept. 30, a spokesman said Thursday.
The discount, which lets customers buy 2005 vehicles at the same price offered to employees, was scheduled to end Sept. 6. Ford is following General Motors (GM) , which announced last week that it would extend its employee-pricing discount through Sept. 30.
Ford spokesman Jim Cain said details haven't been announced, but the automaker will likely add some 2006 vehicles to the mix of products that are discounted. GM added some 2006 full-size trucks and sport utility vehicles to its program last week.
GM was the first of Detroit's Big Three automakers to offer employee prices for all consumers in June. Its sales shot up 41% that month and more than 19% in July. Ford and DaimlerChrysler's (DCX) Chrysler Group followed with employee-pricing plans in July.
Chrysler executives said Wednesday that they haven't yet decided whether to include 2006 vehicles in their program. Chrysler's employee discount is in place indefinitely on 2005 vehicles.
In a recent note to investors, Merrill Lynch analyst John Casesa said GM's sales likely will be down in August because the employee discounts have cut dealers' inventories. But he said Ford still had enough inventory in stock to see sales increase in August. Ford's sales jumped 36% in July thanks to the employee-pricing discount.
The employee-pricing programs have helped automakers achieve near-record sales. The industry reported a seasonally adjusted annual sales rate of 20.8 million units for July, highest since 21.8 million in October 2001, according to research firm Autodata.
But analysts say sales will likely drop this fall because the discounts soaked up demand for vehicles.
DETROIT — Ford (F) is extending its popular employee-pricing discount plan through Sept. 30, a spokesman said Thursday.
The discount, which lets customers buy 2005 vehicles at the same price offered to employees, was scheduled to end Sept. 6. Ford is following General Motors (GM) , which announced last week that it would extend its employee-pricing discount through Sept. 30.
Ford spokesman Jim Cain said details haven't been announced, but the automaker will likely add some 2006 vehicles to the mix of products that are discounted. GM added some 2006 full-size trucks and sport utility vehicles to its program last week.
GM was the first of Detroit's Big Three automakers to offer employee prices for all consumers in June. Its sales shot up 41% that month and more than 19% in July. Ford and DaimlerChrysler's (DCX) Chrysler Group followed with employee-pricing plans in July.
Chrysler executives said Wednesday that they haven't yet decided whether to include 2006 vehicles in their program. Chrysler's employee discount is in place indefinitely on 2005 vehicles.
In a recent note to investors, Merrill Lynch analyst John Casesa said GM's sales likely will be down in August because the employee discounts have cut dealers' inventories. But he said Ford still had enough inventory in stock to see sales increase in August. Ford's sales jumped 36% in July thanks to the employee-pricing discount.
The employee-pricing programs have helped automakers achieve near-record sales. The industry reported a seasonally adjusted annual sales rate of 20.8 million units for July, highest since 21.8 million in October 2001, according to research firm Autodata.
But analysts say sales will likely drop this fall because the discounts soaked up demand for vehicles.
09-04-2005, 10:51 PM
#68
The sizzle in the Steak
Originally Posted by gavriil
I can. It's because the exec team is trying to save their butts for yet another quarter before what the new stuff comes out which they hope sells better. That's all that's happening.
Things are only going to get worse for GM.
10-05-2005, 08:28 PM
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man, it sounds like GM (and specifically, pontiacs) are pretty crappy.
i am really close to getting an '06 GTP coupe for about a grand under invoice, and a grand rebate..
am i making a horrible mistake? i really like the GTP's power.. I was shocked (at first) when i felt the car and it felt plastic...
does ANYONE think it's a decent buy? it LOOKS really good, and it's powerful.. good space for rear seats..
i am really close to getting an '06 GTP coupe for about a grand under invoice, and a grand rebate..
am i making a horrible mistake? i really like the GTP's power.. I was shocked (at first) when i felt the car and it felt plastic...
does ANYONE think it's a decent buy? it LOOKS really good, and it's powerful.. good space for rear seats..
10-05-2005, 09:43 PM
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GM needs bring back a worthy Grand National and the Camaro.
The Mustang is selling like absolute hotcakes with no incentives.
Saturn is the next big thing for GM, great lineup coming soon.
Obviously, they need to do more than just come out with good cars.......like deal with the union issues at hand.
The Mustang is selling like absolute hotcakes with no incentives.
Saturn is the next big thing for GM, great lineup coming soon.
Obviously, they need to do more than just come out with good cars.......like deal with the union issues at hand.
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