GM Fails to Kick Vehicle Discount Habit

20 July 2006

General Motors on Tuesday revealed the extent of this summer's incentive schemes to shift vehicles from US dealer lots.

Although it had vowed to wean itself off special offers in favour of lower sticker prices, GM has acceded to discount pressure from rivals like Chrysler Group [WAMN: 29-Jun-06].

Nevertheless, says the auto giant, "there is no nationwide blowout sale ... planned" - a reference to last year's employee discount scheme which offered vehicles to customers at the same price paid by GM workers.

Currently the automaker is offering an extra $1,000 (€800; £547) discount on midsize and large pickups in Texas, California and Florida; 10% off the list price of 2006 Saturn models; and $1,000 off midsize SUVs such as the Chevrolet Trailblazer for company employees, supplier and dealer employees.

Senior GM executives say US sales have stabilized when viewed on a month-to-month basis, and that restraint on big discount deals is helping to improve the resale values of their vehicles.

Data sourced from Wall Street Journal Online; additional content by WARC staff