GM offers to pay part of gasoline bill for California, Florida consumers
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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.
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.
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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.
Just give the cars away for free, why don't ya.
#5
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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.
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#7
The sizzle in the Steak
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!
What happened to "the new Tahoe will save us"???
GM needs good CARS and FAST!
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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. ![Too Cool](https://acurazine.com/forums/images/smilies/toocool.gif)
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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...
#12
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'd buy one if only given a domestic as an alternative.
#14
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.
#15
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'd buy one if only given a domestic as an alternative.
#16
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.
Originally Posted by TL Maestro
I'd buy one if only given a domestic as an alternative.
#17
Three Wheelin'
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...
All in all, a magnificent "effort" from GM.
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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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