I recall that you indicated that dealers were contacting you in an uproar over GM's employee discount program. Based on dealers I knew, and the guys that work in dealerships on this site pretty forcefully stated that wasn't true.

You continued to bash the program, and said we'll see if it works.

Well, the results are in:

June's sales figures should be up in a week. I think your mind's about to be changed.

 

I don't think we'll really know at the end of the month. July and August sales are important too...need to know if those sales are "additional" sales or pull ahead sales...

I think GM runs the risk of having car sales tank after discontinuing a program like this. Afterall, who goes to the furniture store when they aren't having "THE BEST SALE EVER!".

 

Guy what is up with you getting an Auto?! What are you sick or just old? :P

 

Here is the article, from the Detroit News. I saw it yesterday and thought about posting it, but I really didn't need to see another 500 post thread. Oh well, too late now.

http://www.detnews.com/2005/autosins.../gm-227107.htm

 

Finding a finding a B4C with a stick (especially a 2002) is like finding the Loch Ness monster in your toilet. More likely to be seen after a bad night of drinking than sober.

Out of over 500 made that year, there's only about a couple of dozen (literally!) were sticks, and apparently none actually went to police departments.

 

I wonder how much of an impact the message of quality is having on getting customers in the door? I'm glad the program is seeing some success.

 

Likely not much. I don't know of any significant new information on vehicle quality that would have been timed correctly to offer the monster sales increase for June. I think it's solely due to the bottom-line price, and the simplicity of that pricing.

I'm glad that GM's finding success with this pricing strategy, but like many others, I wonder how long it'll last. Additionally, I'm curious to see what sort of profits they're making at the current levels. We'll know the answer to that soon enough.

 

No one would like to see GM succeed more than I would. However, I stand by my original contention that this program will prove disastrous. Don't believe the "spin" from GM leadership. Remember Paul Ballew stating the price of gas wasn't hurting business? Watch for the bottom line results. See 2nd quarter financials when released and the impact on sales the next few months. Also realize the negative effect on diminshed loan/lease portfolios from the drastic decline in used values. 1st quarter saw a $1 billion loss. What do you suppose will happen as a result of the current round of discounting on top of the massive dollars spent advertising? Again, anyone can "give" them away. GM doesn't understand how to "sell". There is the problem.

 

Not really. Once you do all the numbers out, you find that the incentive programs often got the car cheaper than does Employee Pricing, especially when you start figuring in 72 months of 0% financing. Second of all, GM still is not giving away these cars. In fact, as I'm sure you know, GM MSRP is hopelessly bloated and in most cases more than its competitors. Finally, if you'll remember, the $1 billion loss did not occur because of incentives, but because the cars were not selling. GM has enormous fixed costs whether they sell the cars or not, so they might as will keep thinking up ways to move the metal any way possible until they fix the cost structure - which you plan BTW does nothing to address.

IMO, the next step should be a well advertised drop in MSRP's.

 

GM has announced a price cut on 06s. Another disaster. Hate to sound negative but I believe buyers will sit out until GM is forced to return to the incentive game. I derive most of my income from the sale of GM products, so I assure you I hope I'm wrong. Time will soon tell.

 

I think the employee discount has been a success. I'm seeing fewer GM vehicles on the lots here in town, and the Pontiac place that had 8 GTOs a couple months ago now only has 3.

GM needed an image boost, and the employee discount promotion worked to that end, I think.

 

I agree the iron is moving. However, does that mean we should cut the price another thousand to sell those last three? When you lose money, you can't make it up with volume. The real story will be told when the 2nd quarter financials are in, and we see what happens to sales in the 3rd quarter. If GM makes a profit and stays at 30% share, it was a win. If we lose money and share drops back to 25%, or perhaps worse, it was a bad move.

 

Hopefully the ownership experience will be good to these new owners and they'll be happy to suggest a GM to friends, and those who were first time buyers might become repeat buyers.

 

Congrats on the B4C Guy . .What color is it ? The end of 2002 , the B4C was available for public purchase . Theres all your 6 speeds .

 

The more units you can produce, the cheaper it is to produce the unit.