GM offers to pay part of gasoline bill for California, Florida consumers

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Old 05-23-2006, 11:42 PM
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GM offers to pay part of gasoline bill for California, Florida consumers

GM offers to pay part of gasoline bill for California, Florida consumers - - Source: Autonews.com

DETROIT -- General Motors will help foot the high cost of gasoline for auto shoppers in California and Florida.

GM is starting a marketing program in those two states that caps gasoline prices at $1.99 a gallon when a consumer buys a certain GM vehicle.

"Fuel prices are very high in those states, and both are key markets for us where we want to increase our market share," says Jeff Kuhlman, a GM spokesman.

The plan is called GM Fuel Price Protection Program and starts Thursday, May 25.

Here's how it works:

A consumer who buys or leases a certain GM vehicle between May 25 and July 5 will get a guaranteed gasoline rate of $1.99 a gallon for 12 months.

GM will pay the difference between $1.99 and the average price of premium gasoline as calculated by AAA. Buyers can drive an unlimited number of miles, which are tracked by OnStar.

$104 monthly savings

For example, a California resident who buys or leases a 2007 Chevrolet Tahoe SUV and drives it 1,000 miles a month would see a monthly savings of about $103.75 based on the current California average premium gasoline price of $3.65 a gallon, GM says.

A Florida resident who buys a 2006 Buick LaCrosse sedan with the standard V-6 engine and drives about 1,000 miles a month would see a monthly savings of about $60 based on the current Florida average premium gasoline price of $3.19 a gallon.

The credit will be applied each month to a prepaid card, which will be issued to the consumer. Those are good until Dec. 31, 2007, and can be used for any type of purchase on MasterCard.

The LaCrosse buyer in GM's example would receive $720, less than a typical cash rebate. Consumers may receive any other purchase incentives offered by the automaker.

In California, the selected vehicles include 2006 and 2007 models of the Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and Hummer H2 and H3 SUVs; Chevrolet Impala, Chevrolet Monte Carlo and Pontiac Grand Prix, and Buick Lucerne sedans; and the Cadillac SRX crossover.

In Florida, the eligible vehicles are 2006 and 2007 models of the Impala, Monte Carlo, Grand Prix and the Buick LaCrosse sedan.

If the program is a hit, GM will consider expanding it to other areas.

Strong sales

GM's nationwide sales for the mid-sized cars included in this program are up 20.4 percent through April compared with the year-ago period to 190,151. That boost is largely due to the strong sales of the Lucerne, Impala and Grand Prix.

GM's sales for SUVs and the SRX are also up 18.3 percent through April, boosted by strong Hummer H3 and Tahoe sales.

Sales of the redesigned 2007 Tahoe are up by 35.5 percent in that same period. The Hummer H2 sales fell 24.2 percent through April compared with the year-ago period to 5,717 units, but the new H3 smaller SUV has sold 16,582 units through April.

GM plans to start marketing the fuel price program through direct mail, TV, radio and print advertising in those two states, Kuhlman says.

Starting Friday, May 25, consumers can go to www.fuelprotection.com to calculate potential savings on a selected vehicle.
Old 05-23-2006, 11:45 PM
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That says that GM is concerned about high gas prices and large GM vehicles produced today and GM's financial dependance on them.
Old 05-24-2006, 10:58 AM
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GM is desperate... So when you buy a GM product, you get thousands in rebates + money for gasoline? I wonder who came up which this 'business plan'. I'm guessing, a 13 year old child.

Just give the cars away for free, why don't ya.
Old 05-24-2006, 11:08 AM
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Wow...when you start offering to pay for gas just so that people will buy your cars, that's desperation...
Old 05-24-2006, 11:11 AM
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Gotta hand it to them - they have some crafty marketing guys. The problem is that the gimicks won't solve their long term issues. The list can tell you which vehicles aren't selling.
Old 05-24-2006, 01:44 PM
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GM

You have now officially lost all credibility as a sound company that is working it's way back to profitability.
Old 05-24-2006, 03:20 PM
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So now GM is realing from their dependance on the SUV and Trucks.
What happened to "the new Tahoe will save us"???

GM needs good CARS and FAST!
Old 05-24-2006, 03:30 PM
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Originally Posted by biker
Gotta hand it to them - they have some crafty marketing guys. The problem is that the gimicks won't solve their long term issues. The list can tell you which vehicles aren't selling.
Just finished a two day trip to Austin, TX renting a new base Grand Prix. Boy they're (GM) far from reality...
Old 05-24-2006, 10:21 PM
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Originally Posted by gavriil
Just finished a two day trip to Austin, TX renting a new base Grand Prix. Boy they're (GM) far from reality...
You would have preferred a Hyundai Sonata?
Old 05-24-2006, 10:46 PM
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If Jeep did this I might get that JGC SRT-8 although gas is still not bad here
Old 05-24-2006, 11:42 PM
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Originally Posted by M TYPE X
You would have preferred a Hyundai Sonata?
If it's the new Sonata, then by all means, please. The Grand Prix barely stacks up against that, much less a Honda or Toyota...
Old 05-25-2006, 11:59 AM
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hehe, I totally agree. The new Sonata is light-years ahead of domestics in terms of competing with anything from Japan.

I'd buy one if only given a domestic as an alternative.
Old 05-25-2006, 06:44 PM
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Originally Posted by M TYPE X
You would have preferred a Hyundai Sonata?

I dont know. I've never drive one.
Old 05-25-2006, 07:19 PM
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I don't think GM was the first one with Gas incentives on new vehicles. I remember other companies offering ~3k etc in free gas on signing instead of rebates. If anything, GM limiting this deal to two states cuts any real losses from the deal and will probably bring in buyers from probably two tough markets for the company.
Old 05-25-2006, 07:28 PM
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Originally Posted by TL Maestro
hehe, I totally agree. The new Sonata is light-years ahead of domestics in terms of competing with anything from Japan.

I'd buy one if only given a domestic as an alternative.
I don't really agree, exterior wise its on par if not beyond the japanese, but inside it has nothing on any company from an overall design standpoint. I'd take a compact class car over it if it really came down to that.
Old 05-26-2006, 12:16 AM
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Originally Posted by heyitsme
I don't really agree, exterior wise its on par if not beyond the japanese, but inside it has nothing on any company from an overall design standpoint. I'd take a compact class car over it if it really came down to that.
yes, I agree with you. That's why I qualified it with:

Originally Posted by TL Maestro
I'd buy one if only given a domestic as an alternative.
Old 05-26-2006, 08:44 AM
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Originally Posted by gavriil
Just finished a two day trip to Austin, TX renting a new base Grand Prix. Boy they're (GM) far from reality...
Couldn't agree with you more. I've been driving a GrandPrix GT whilst on vacation for the past week, and the interior makes one want to puke. Steering feel/weight is non existent, and hnadling is nice and spongy in the corners.

All in all, a magnificent "effort" from GM.

As for the gas program from GM: i don't really see it as a desperate move - its more a marketing gimmick that will draw cinsumers into the showrooms. Many SUV buyers are worried about possible gas price hikes, and this program would alleviate some of their concerns. Meanwhile, all GM has to do is cut a rebate on a vehicle from say 3k to 2k and that way they don't "lose" money per say (on average).
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