GM "Red Tag Event"
11-07-2005, 07:37 PM
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GM "Red Tag Event"
GM sweetens cash rebates on 2005 models in U.S. - - Reuters / November 04, 2005 - - Source: Automotive News
DETROIT -- General Motors is offering additional cash rebates on all 2005 vehicles sold on the U.S. market except the Hummer H1, in an effort to rid itself of year-end inventory, the company said on Friday.
The world's largest automaker said the $1,000 bonus cash offers will run through Nov. 13.
Both Ford Motor Co. and the Chrysler group are also offering additional rebates. The new offers follow significant drops in October sales amid falling consumer confidence and high gas prices.
Both GM and Ford reported 25 percent declines in monthly sales on Tuesday.
"The reason for the bonus cash offer is a continuing sell-down of 2005 inventory," GM spokeswoman Deborah Silverman said. Some of GM's 2005 cars and trucks already offer discounts of up to $6,000. The new rebates would add to those offers.
The world's largest automaker said the $1,000 bonus cash offers will run through Nov. 13.
Both Ford Motor Co. and the Chrysler group are also offering additional rebates. The new offers follow significant drops in October sales amid falling consumer confidence and high gas prices.
Both GM and Ford reported 25 percent declines in monthly sales on Tuesday.
"The reason for the bonus cash offer is a continuing sell-down of 2005 inventory," GM spokeswoman Deborah Silverman said. Some of GM's 2005 cars and trucks already offer discounts of up to $6,000. The new rebates would add to those offers.
11-08-2005, 12:07 AM
#2
The sizzle in the Steak
Simply amazing.
11-08-2005, 07:12 AM
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I don’t see what the big deal is. Most of the 2005’s are gone.
2006’s have been shipping for months.
All that’s left is the crap that people didn’t want with 4,000-5,000 dollar “employee” rebates.
2006’s have been shipping for months.
All that’s left is the crap that people didn’t want with 4,000-5,000 dollar “employee” rebates.
11-08-2005, 02:15 PM
#7
The sizzle in the Steak
The amazing thing is that even after heavy employee discounts they still have inventory, and the inventory that they have, they can't get rid of!!!!
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11-08-2005, 10:45 PM
#8
Originally Posted by CGTSX2004
Hmm....so they're bleeding money and they still decide to give further rebates to move cars? Great business model. Gotta wonder how they actually ever make any money.
I doubt it is about making money at this point, but more like cutting their losses. or even breaking even.
11-09-2005, 10:08 AM
#10
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Originally Posted by SpeedyV6
How much is the rebate on a GTO?
...the bigger the rebate on the GTO, the more likely I am to trade the Maxima for one.
11-09-2005, 10:14 AM
#11
Not Asian
Originally Posted by CGTSX2004
Hmm....so they're bleeding money and they still decide to give further rebates to move cars? Great business model. Gotta wonder how they actually ever make any money.
11-09-2005, 07:39 PM
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Originally Posted by Moog-Type-S
The amazing thing is that even after heavy employee discounts they still have inventory, and the inventory that they have, they can't get rid of!!!!
11-14-2005, 01:29 PM
#13
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RedTags
http://www.usatoday.com/money/autos/...l-motors_x.htm
GM launches 'Red Tag' sales incentive
By David N. Goodman, Associated Press
DETROIT — Hoping to boost sales, General Motors (GM) announced Monday a new discount program of "Red Tag" prices that could knock from several hundred dollars to more than $4,440 off the list price of some of its 2005 and 2006 model cars and light trucks through Jan. 3.
The announcement comes as the world's largest automaker has been running up billion-dollar losses and reporting a declining North American market share.
Under the new incentives, dealers will post fixed maximum prices on most models of the Buick, Chevrolet, GMC and Pontiac nameplates, GM said in a statement.
The GM announcement can be expected to trigger a new round of price cuts across the car industry, including by Asian producers that have been gaining market share at the expense of the U.S. Big Three, said analyst Noriaki Hirakata of Morgan Stanley in Tokyo.
"Japanese — they hate incentives, but they will have to respond," Hirakata said. "The selling price of light trucks will be under pressure."
GM reported a net loss of $1.6 billion in the third quarter, compared with net income of $315 million a year ago, as its North American division continued to suffer from high health care costs and falling sales of sport-utility vehicles.
The automaker's North American market share fell to 25.6% in the third quarter from 28.5% a year ago. Through the first nine months of this year, GM's market share was 26.1%, down from 27% in 2004.
GM's U.S. sales fell about 23% in October from a year earlier, while they fell about 11% industrywide.
The new round of incentives "combines the best features of the recent 'GM Employee Discount for Everyone' program and last December's 'Red Tag' program," GM said in a statement.
GM said the red tag prices are "consistent across the country," exclusive of taxes, title costs and dealer fees.
As examples of the new prices for 2006 models, the tag price for the GMC Envoy two-wheel drive SLE 3SA sport-utility vehicle would be $4,442 below its previous sticker price, GM said on its website.
Among cars, the tag price of the Buick LaCrosse CX car would drop $3,019, while that for the base-model Pontiac Vibe car would fall $692 from the sticker price.
The automaker said it was launching a nationwide advertising campaign on network television, on radio, in print and in other media to promote the incentives.
The company announced other incentives for its Cadillac, Saturn, Saab and Hummer nameplates. It said Cadillac, Saturn and Saab will offer $500 rebates, while Hummer will have special pricing for a rear entertainment system.
GM shares have been trading at 13-year lows. Rating agencies have downgraded its debt, and it has had a shrinking U.S. market share.
GM launches 'Red Tag' sales incentive
By David N. Goodman, Associated Press
DETROIT — Hoping to boost sales, General Motors (GM) announced Monday a new discount program of "Red Tag" prices that could knock from several hundred dollars to more than $4,440 off the list price of some of its 2005 and 2006 model cars and light trucks through Jan. 3.
The announcement comes as the world's largest automaker has been running up billion-dollar losses and reporting a declining North American market share.
Under the new incentives, dealers will post fixed maximum prices on most models of the Buick, Chevrolet, GMC and Pontiac nameplates, GM said in a statement.
The GM announcement can be expected to trigger a new round of price cuts across the car industry, including by Asian producers that have been gaining market share at the expense of the U.S. Big Three, said analyst Noriaki Hirakata of Morgan Stanley in Tokyo.
"Japanese — they hate incentives, but they will have to respond," Hirakata said. "The selling price of light trucks will be under pressure."
GM reported a net loss of $1.6 billion in the third quarter, compared with net income of $315 million a year ago, as its North American division continued to suffer from high health care costs and falling sales of sport-utility vehicles.
The automaker's North American market share fell to 25.6% in the third quarter from 28.5% a year ago. Through the first nine months of this year, GM's market share was 26.1%, down from 27% in 2004.
GM's U.S. sales fell about 23% in October from a year earlier, while they fell about 11% industrywide.
The new round of incentives "combines the best features of the recent 'GM Employee Discount for Everyone' program and last December's 'Red Tag' program," GM said in a statement.
GM said the red tag prices are "consistent across the country," exclusive of taxes, title costs and dealer fees.
As examples of the new prices for 2006 models, the tag price for the GMC Envoy two-wheel drive SLE 3SA sport-utility vehicle would be $4,442 below its previous sticker price, GM said on its website.
Among cars, the tag price of the Buick LaCrosse CX car would drop $3,019, while that for the base-model Pontiac Vibe car would fall $692 from the sticker price.
The automaker said it was launching a nationwide advertising campaign on network television, on radio, in print and in other media to promote the incentives.
The company announced other incentives for its Cadillac, Saturn, Saab and Hummer nameplates. It said Cadillac, Saturn and Saab will offer $500 rebates, while Hummer will have special pricing for a rear entertainment system.
GM shares have been trading at 13-year lows. Rating agencies have downgraded its debt, and it has had a shrinking U.S. market share.
11-14-2005, 01:52 PM
#14
Fahrvergnügen'd
Do they realize that most people who won't put a big "3" on the rear window of their new vehicle won't buy a GM even if there were $10k rebates?
Unless it's a C6 of course
Unless it's a C6 of course
11-14-2005, 02:26 PM
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i have heard of people buying domestic cars and trading em and getting crap as a trade in like a year or 2 later(worse than normal) the excuses people i hear, is that there was such a discount or markup when it was new. 
it doesnt really make sense
it doesnt really make sense
11-14-2005, 02:39 PM
#16
Fahrvergnügen'd
Originally Posted by dallison
i have heard of people buying domestic cars and trading em and getting crap as a trade in like a year or 2 later(worse than normal) the excuses people i hear, is that there was such a discount or markup when it was new. it doesnt really make sense
it doesnt really make senseI will never do that again. There are 11ty7 GPs at auction because GM is a rental fleet whore and that totally devalues the vehicles.
I learned my lesson.
11-14-2005, 02:58 PM
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Originally Posted by charliemike
Do they realize that most people who won't put a big "3" on the rear window of their new vehicle won't buy a GM even if there were $10k rebates?
Unless it's a C6 of course
Unless it's a C6 of course
If they did, they’d probably sell out the entire 2006 run in a week.
Actually. a lot of early 2006 buyers are already bitching about the 2-3K discounts that are going on now since they paid MSRP on cars they ordered this past summer.
11-15-2005, 10:23 AM
#18
Safety Car
Better than Employee Discounts
http://money.cnn.com/2005/11/11/news...reut/index.htm
GM returns to employee discounts
Sale prices said to be better than the summer employee deals, which have hit fall sales.
November 14, 2005: 10:00 AM EST
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.
GM returns to employee discounts
Sale prices said to be better than the summer employee deals, which have hit fall sales.
November 14, 2005: 10:00 AM EST
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.
11-15-2005, 11:18 AM
#19
Fahrvergnügen'd
Originally Posted by TSX69
http://money.cnn.com/2005/11/11/news...reut/index.htm
GM returns to employee discounts
Sale prices said to be better than the summer employee deals, which have hit fall sales.
November 14, 2005: 10:00 AM EST
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.
GM returns to employee discounts
Sale prices said to be better than the summer employee deals, which have hit fall sales.
November 14, 2005: 10:00 AM EST
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.
So, if a 2003 Chevrolet Monte Carlo is worth $8k, and a decent 3-yr residual is about 50%, the 2006 should be no more than $16k.
11-15-2005, 11:48 AM
#20
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Car News briefs: GM launches new incentive program; DCX sells Mitsubishi stake - - Source: Autoweek
DETROIT -- General Motors launched a nationwide incentive program Sunday, Nov. 13, GM dealers say. The program, called "Red Tag Event," is scheduled to run through Jan. 3.
A GM spokeswoman would not comment. The company ran a similar sale at the end of last year.
Under the new program, dealers say, customers can buy virtually any 2005 or 2006 GM vehicle for $100 over the price a supplier would pay, generally $100 to $200 below invoice. The promotion does not include the Pontiac Solstice, Chevrolet Corvette or Buick Lucerne.
Dealers say GM told them Friday, Nov. 11, that a national advertising campaign for the sale will use the slogan: "See some red. Save some green." -JAMIE LAREAU
A GM spokeswoman would not comment. The company ran a similar sale at the end of last year.
Under the new program, dealers say, customers can buy virtually any 2005 or 2006 GM vehicle for $100 over the price a supplier would pay, generally $100 to $200 below invoice. The promotion does not include the Pontiac Solstice, Chevrolet Corvette or Buick Lucerne.
Dealers say GM told them Friday, Nov. 11, that a national advertising campaign for the sale will use the slogan: "See some red. Save some green." -JAMIE LAREAU
11-15-2005, 12:53 PM
#23
Fahrvergnügen'd
Originally Posted by KilroyR1
If you lose money with every vehicle you sell, how does selling more help?
I'm only half serious.
I'm only half serious.
11-16-2005, 03:53 AM
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Originally Posted by KilroyR1
If you lose money with every vehicle you sell, how does selling more help?
I'm only half serious.
I'm only half serious.
11-16-2005, 06:35 AM
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Originally Posted by SJ Silver Type-S
Because GMAC still makes a lot of money financing them...(not enough though)
11-16-2005, 07:29 AM
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Originally Posted by KilroyR1
Isn't GM spinning off their finance arm to generate cash so their financial ratios look better so they can borrow more money and really go bankrupt?
11-16-2005, 10:46 AM
#27
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Originally Posted by KilroyR1
If you lose money with every vehicle you sell, how does selling more help?
I'm only half serious.
I'm only half serious.
Inventory costs money. Keeping cars in lots is expensive.
11-16-2005, 11:02 AM
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Originally Posted by KilroyR1
Isn't GM spinning off their finance arm to generate cash so their financial ratios look better so they can borrow more money and really go bankrupt?
11-16-2005, 11:25 AM
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Originally Posted by SJ Silver Type-S
Yes they are looking for a buyer for GMAC but not so GM can borrow more money (they will get plenty from the sale) but so that GMs junk-bond rating doesnt negatively impact what GMAC is able to do.
11-17-2005, 07:36 AM
#30
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Monkey See Monkey Do
http://www.cnn.com/2005/AUTOS/11/16/...eut/index.html
Ford offers new sales incentives
The automaker says it will cut thousands of dollars off most new cars and trucks to boost sales.
November 16, 2005; Posted: 5:11 p.m. EST (2211 GMT)
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.
Ford offers new sales incentives
The automaker says it will cut thousands of dollars off most new cars and trucks to boost sales.
November 16, 2005; Posted: 5:11 p.m. EST (2211 GMT)
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.
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