Employee Pricing a disaster?

This sounds bad...

http://www.freep.com/money/autonews/gm15e_20051015.htm

While dealers report that some new GM products, such as the Hummer H3 and Chevrolet HHR, are runaway hits, retail sales of GM cars and trucks were down 57% in the first nine days of October, compared to the same period of 2004 , the Power Information Network, headquartered in Westlake Village, Calif., reported Friday.

57% :eek:

It wasnt a disaster, it was a complete success. The Employee deal ended in September, so of course sales are going to be down now, since everyone already got a deal!

Plus, if I am not mistaken...normally there are many more previous model year (05's) on the lots this time of year, but GM has already cleared them out with employee pricing. Also, the rebates suck for the 06's right now.

Also, the rebates suck for the 06's right now.
that's basically the meat of it. everything else is an excuse. the problem for GM is after a firesale, they aren't setting the pricing on "new" '06 models that are vertually unchanged low enough for people to consider them.

You think it sounds bad now...most have been pumping out vehicles at rates that aren't neccessary to end the fiscal quarter strong. Watch over the next 3 months... :(
(BTW, I'm heading for another layoff at the end of the month, orders are down across the entire vehicle industry and am working mandantory O/T for the remaining time.. :rolleyes: )
I would have hated to have seen the figures w/o the Employee Pricing sales incentive.
(BTW, my close friend traded in a perfectly good 2000 Silverado for an '05 with $9,000 in savings.. :cool: )

Daimler Chrysler was fairly smart...right now their 06 incentives are better or close to the same on the 05 models.

It wasnt a disaster, it was a complete success. The Employee deal ended in September, so of course sales are going to be down now, since everyone already got a deal!

Is it just that, or were a lot of the sales "pull ahead" sales? Maybe some combination of the two?

Also, GM new low "total value pricing" is going to gurt it for a while. Many GM buyers were conditioned to using rebates to get out of cars they were upside down on. Without the rebates, there now is not enough room in the 06's for them to continue the cycle.

My local ponitac dealership has about 3 rows of cars that just arent there because they sold them all.

I dont see that as a disaster.

Plus, if I am not mistaken...normally there are many more previous model year (05's) on the lots this time of year, but GM has already cleared them out with employee pricing. Also, the rebates suck for the 06's right now.
That has a lot to do with it. GM's inventories are currently at about a 35 day supply, way below what they usually have, and way lower than the 60 days that they like to target. This is of course due to the employee pricing program that cleared out all the 2005s. Without all these past model year vehicles to unload, year over year comparisons are going to be pretty bleak.

And I agree that the new value pricing is going to take time to take hold. The last time GM tried to scale back incentives consumers stayed away and GM blinked, returning to the big incentives. We'll see if GM has enough faith in their new products, and the willpower to suffer a few lacklustre months in order to kick the incentive habit.

Chrysler did a phenominal balencing act with their "Employee pricing". Where as GM sacrificed sales for the next number of months, Chrysler (and to a lesser extent, Ford) used it simply to move slow selling vehicles, as opposed to a Fire Sale on everything except "halo vehicles".

While GM has done alot to reinforce their "K-Mart" image on the auto scene, it seems Chrysler seems to have gained quite a bit of stature with the public.

You guys will really like this then....

http://forums.corvetteforum.com/showthread.php?t=1209904&forum_id=74

Did I read that right?

GM is doing a price increase?! :shock:

Aren't their sales down over 50% overall right now?

Many GM buyers were conditioned to using rebates to get out of cars they were upside down on. Without the rebates, there now is not enough room in the 06's for them to continue the cycle.

Uhm, ding ding ding...we have a winner :(

I will say one thing...rebates are STILL too high IMO despite the value initiative. Consider that if I want a new GP or a G6 sedan with the 3.5 (either base or GT sedan...all other G6s are $500 less rebate), I can already get $1,500 and its not even November? I don't even have a Torrent yet, and it has $1,000!!!!

Something tells me value pricing won't stop fire sale rebates...GM doesn't have the gumption to suck up several months of slow sales. I can't blame them...they have to keep the pig stockholders happy. Which is a shame, because GM really does live month-to-month and quarter-to-quarter far more than it should if it was able to look at the bigger picture.

I wish them luck :(

I won't comment on the value pricing and the rebates situation that Jason E is talking about. I simply don't know what to think and have been tired of rebates for a very long time. As for the sales situation, September and October were blowout months last year where GM had the 72-hour clearance, or somehting like that, and used it to clear out all the '04s, now they just did it a couple of months early. My Chevy dealer has like 35 cars missing from their usual inventory on display, I think most dealers don't have all thier inventory yet.

booo

Oh GOODY......I get to put my two cents in about the Employee Pricing for everyone.

First......rebates are kinda like drugs or smoking.....you just don't suddenly stop without pretty nasty results.

Second.....someone pointed out that we had a 72 hour sale last year....so it's one thing to say sales are down X%......but one also has to look at WHAT happened last year. Further, don't forget that there were a whole bunch of people relocated to all over God's creation because of natural disasters.

Third........Employee pricing was one way to clear the lots of 2005 models so that : 1) we could reprice 2006s downward in many cases and 2) get dealers to order some new cars and trucks.......dealers aren't gonna order cars and trucks when their lots are full. ...and we don't make money when the car is sold to the retail customer........we make it when we invoice the dealer for a new car or truck.

And......I'll address dealer issues next............

One thing I will say is that Employee Pricing still can't save the Montana SV6 :mad: We have 4. We've had 4 since January. I don't think one was even TEST DRIVEN during Employee Pricing. I even have 2 OLD BODY '05 Montanas no one wants, either. We have not sold a van in over a full year...and it isn't because we aren't trying. I just did a 1/2 page ad in the local paper of nothing but vans. All 6 vans. Not ONE test drive.

Think we'll be ordering ANY '06s? Think again. Sadly, Scott is right...dealers won't re-order stuff that is sitting. And let me tell you...we had significantly better luck selling AZTEKS than these things. The odd thing is that if you sit in one and drive it, they really aren't that bad as far as minivans go. The interiors are extremely nice.

Scott, is there a reason as to why the '06 vans get the 3.9, but cars like the Equinox, Torrent and Lucerne get stuck with 3800s and 3400s? If there are 2 new important cars that need more oomph, I'd have to say its the Torrent and the Lucerne. The 3400 is fine in the Torrent at $24k, but when you get close to $30k, a 3.9 would make it more of a standout. Any thoughts? Any hints on when the Torrent and Equinox will get more power? 3.9 perhaps? :D

Do that and future-wifey will be forced to buy one in the next year or two by future hubby :D I don't want to drive an SUV every day, but I need someone around here to get something practical for the house :D Garden equipment and 2x4x8s will not go in the Z :D

One thing I will say is that Employee Pricing still can't save the Montana SV6 :mad: We have 4. We've had 4 since January. I don't think one was even TEST DRIVEN during Employee Pricing. I even have 2 OLD BODY '05 Montanas no one wants, either. We have not sold a van in over a full year...and it isn't because we aren't trying. I just did a 1/2 page ad in the local paper of nothing but vans. All 6 vans. Not ONE test drive.

Think we'll be ordering ANY '06s? Think again. Sadly, Scott is right...dealers won't re-order stuff that is sitting. And let me tell you...we had significantly better luck selling AZTEKS than these things. The odd thing is that if you sit in one and drive it, they really aren't that bad as far as minivans go. The interiors are extremely nice.

Scott, is there a reason as to why the '06 vans get the 3.9, but cars like the Equinox, Torrent and Lucerne get stuck with 3800s and 3400s? If there are 2 new important cars that need more oomph, I'd have to say its the Torrent and the Lucerne. The 3400 is fine in the Torrent at $24k, but when you get close to $30k, a 3.9 would make it more of a standout. Any thoughts? Any hints on when the Torrent and Equinox will get more power? 3.9 perhaps? :D

Do that and future-wifey will be forced to buy one in the next year or two by future hubby :D I don't want to drive an SUV every day, but I need someone around here to get something practical for the house :D Garden equipment and 2x4x8s will not go in the Z :D

Ever the GM problem. Dealers for brands A, B, C, D scream "we need a van!!!". GM delivers 4 "different" vans that are each 1/4 the effort of one from the competition. Now, instead of having one REALLY GOOD van for one satisfied brand and 3 pissed off brands, you get 4 pissed off brands and 4 sh1tty vans that nobody wants.

Hooray! :rolleyes:

Cars that sit on lots in one part of the country, sell great in others. I guess how much something sucks depends on where your standing...
Minivans enjoyed their Glory Days, in the '80's, now it's the SUV and compact SUV's and Trucks that are trending...Aftermarkets are booming for them!
Where's the minivan aftermarket???
Having owned some minivans made me appreciate my more versital SUV...
Another good example of how domestic stereotypes are hurting sales...Women don't like being called a "minivan soccer mom"...An SUV gives them a tougher image.

Cars that sit on lots in one part of the country, sell great in others. I guess how much something sucks depends on where your standing...
Minivans enjoyed their Glory Days, in the '80's, now it's the SUV and compact SUV's and Trucks that are trending...Aftermarkets are booming for them!
Where's the minivan aftermarket???
Having owned some minivans made me appreciate my more versital SUV...
Another good example of how domestic stereotypes are hurting sales...Women don't like being called a "minivan soccer mom"...An SUV gives them a tougher image.

There is still a good minivan market out there. New features like stow-n-go seating help them even more. T&C's and Caravans are selling decently well right now. Right now the SUV/Truck market has taken a hit because of the storms and rising gas prices.
Lots are overloaded with used ones that were traded in for more economical vehicles. Cars with 3rd row seating, larger sedans with V6's, and minivans have been replacing them. Trucks, while hurt by gas prices, didnt change much, cause theres really no true replacement for their uses. Theres a heavy trend by model thing goin on with cars. June/July for us was a huge seller for minivans and Pacificas, then right before the hurricanes, we saw an increase in SUV sales, during and after we saw a rediculous jump in SUV trade ins and small vehicle sales.
We were actually neonless for almost a week because we sold our entire stock of them. We turned around and ordered as many as we could...I think we obtained somewhere around 80-90 of those orders. They are still a fairly hot item and we are steadily moving through those orders, though we slowly see small SUVs getting back to normal and everything else kind of evening out right now.
You can still see the hit in the large vehicle market with the rediculous incentives. I think we have a few trucks going 10k below msrp because of 5 grand incentives. Other large vehicles are right behind them.

wrastler: There is still a good minivan market out there. New features like stow-n-go seating help them even more. T&C's and Caravans are selling decently well right now. Right now the SUV/Truck market has taken a hit because of the storms and rising gas prices. Good point, :thumb: increasing gas prices and more versitility are bolstering the market probably for the next couple of years anyways.
(Speaking of Pacifica's, man what a W-I-D-E @$$ on that thing, I never noticed until I got stuck in traffic behind one...you could put a Billboard on the back of that thing.. :lol: )

(Speaking of Pacifica's, man what a W-I-D-E @$$ on that thing, I never noticed until I got stuck in traffic behind one...you could put a Billboard on the back of that thing.. :lol: )


haha, yea they look kinda funny to me...I've been sellin em for 5 months and I still can't get used to em.

One thing I will say is that Employee Pricing still can't save the Montana SV6 :mad: We have 4. We've had 4 since January. I don't think one was even TEST DRIVEN during Employee Pricing. I even have 2 OLD BODY '05 Montanas no one wants, either. We have not sold a van in over a full year...and it isn't because we aren't trying. I just did a 1/2 page ad in the local paper of nothing but vans. All 6 vans. Not ONE test drive.

After having the vans out for almost 1 year I like the Pontiac the least. Pontiac doesn't need a van, they needs a sporty RWD sedan.

One thing I will say is that Employee Pricing still can't save the Montana SV6 :mad: We have 4. We've had 4 since January. I don't think one was even TEST DRIVEN during Employee Pricing. I even have 2 OLD BODY '05 Montanas no one wants, either. We have not sold a van in over a full year...and it isn't because we aren't trying. I just did a 1/2 page ad in the local paper of nothing but vans. All 6 vans. Not ONE test drive.
You're not alone LOL! I just sold our last old style '05 a few weeks ago. Interesting thing is that she wanted nothing to do with the SV6, and drove over a hour and a half to buy the Montana from me. Nice family wanted out of their Dodge Caravan, and I was happy to oblige.

In terms of the GM employee fire sale, cleaned us out for the most part with the exception of some full/mid size SUV's. We are suffering the hang-over from it now though. Now that it is over, GM can advertise its products so people want the car instead of only advertising "the deal". That'll be nice....

All I want to say is that minivans are more practical than SUVs for the role of family hauler that sees occaisionally cargo use and no offroad driving.

Lew,

Its a long way to dealer trade these puppies, but I'll send them to you for even your least desireable cars. Have any Azteks still? How about an '04 GTO? Can I sell them to you for invoice - holdback - $1k or so? How about we swap them for used vans??? :D

In my 5 years there, I have NEVER seen us have such a problem with a specific model lineup. I mean, we sold Oldsmobiles in 2004 for crying out loud!!! We sold Azteks!!! Sunfires!!! We've had a straggler here and there every now and then, but EVERY SINGLE UNIT FOR THE ENTIRE YEAR????

HELP.

Lew,

Its a long way to dealer trade these puppies, but I'll send them to you for even your least desireable cars. Have any Azteks still? How about an '04 GTO? Can I sell them to you for invoice - holdback - $1k or so? How about we swap them for used vans??? :D

In my 5 years there, I have NEVER seen us have such a problem with a specific model lineup. I mean, we sold Oldsmobiles in 2004 for crying out loud!!! We sold Azteks!!! Sunfires!!! We've had a straggler here and there every now and then, but EVERY SINGLE UNIT FOR THE ENTIRE YEAR????

HELP.
Hmmmm.... :D

I've got an '05 SSR that'll be celebrating a birthday with us now that winter is upon us, a couple full size and mid size suv's that have a price that's too close to the 2006's, and a couple CSV's too. I'm afraid we're in the same boat!

HAZ-Matt: All I want to say is that minivans are more practical than SUVs for the role of family hauler that sees occaisionally cargo use and no offroad driving.I don't know...some people like the security for winter driving. And some like having a front end(hood) to steer by..plus the higher point of vision etc...
I had a Astro Van with a one-legger rear. I got stuck in the curb-gutter, in front of my house in refrozen water, no snow, and had 3 tires on dry land!.. :eek:

I would trade my Grand Prix in on a G6 GTP Coupe right about now if I was not upside down on it. Wanna learn how about depriciation...buy a GP...and I got it at a nice price. I hate having a 4 door even if it is my daily driver...plus I want something smaller that does not run on premium.

I don't know...some people like the security for winter driving. And some like having a front end(hood) to steer by..plus the higher point of vision.

It looks like you were the exact buyer GM had in mind when designing their new minivans, what with their high hood, AWD, and tall seating position.