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GM's newest incentive - $1.99/gallon gasoline in Florida and California
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General Motors promised that it would develop some innovative sales promotions this summer, and we have to say that it delivers with a newly-announced offer for Florida and California residents who buy selected SUVs and midsize sedans.
Buyers will be issued a pre-paid credit card, which will be credited monthly with reimbursement for gasoline costs above and beyond $1.99/gallon until December of 2007. The credit will be based on the published AAA price for premium fuel and the actual mileage driven (tracked via OnStar, natch), and so those who rack up the miles could end up with a substantial chunk of change back in their pockets - especially if gas prices continue towards pessimists' projections of $4/gallon (or worse).
The gas credit applies to the Chevrolet Tahoe, Suburban, Monte Carlo, and Impala; the GMC Yukon, Hummer's H2 and H3, the Cadillac SRX, Pontiac's Grand Prix, and Buick's new Lucerne. GM claims that the vehicles were selected for their "outstanding fuel economy and great consumer appeal".
Check out the full press release from the General after the jump...[Source: GM]
GM Offers Gas Price Protection to Consumers in Florida and California
Regional Program Caps Gas Prices at $1.99 per Gallon for Eligible Vehicles OnStar Technology Key to GM's Unique Offer
ALPHARETTA, GA – GM today announced its "GM Fuel Price Protection Program." This regional program caps what consumers pay for gas at $1.99 a gallon when they purchase select 2006 and 2007 GM full-size utilities and mid-size cars.
"This program gives consumers an opportunity to experience the highly fuel-efficient vehicles GM has to offer in the mid-size segment," said Dave Borchelt, GM Southeast regional general manager. "It helps protect consumers against rising fuel prices by providing them with a partial credit for their fuel purchases for one year."
The credit is based on the consumer's estimated fuel usage each month. Fuel consumption is calculated based on the mileage driven, as recorded by OnStar and the EPA city fuel economy mileage rating for the vehicle.
Using the calculation of the consumer's estimated fuel usage each month, they will be credited for the difference between the average price per gallon of premium fuel in their state, as published by the Automobile Association of America (AAA), and the $1.99 gas price protection cap.
The credit will be applied each month to a pre-paid card, which will be issued to the consumer. The credits are good until December 31, 2007 and may be used for any type of purchase at any location that accepts MasterCard. There is no mileage limitation.
"This is a unique offer that only GM is making," said Mike Jackson, GM North America vice president, Vehicle Brand Marketing/Advertising. "This program leverages some of our greatest strengths, including great new GM vehicles, often with some of the best fuel economy ratings in their class, and leading edge OnStar technology. To top it off, we're now offering consumers in Florida and California protection against rising fuel prices."
A California resident who purchases a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would realize an estimated $103.75 monthly credit, based on the current average premium fuel price of $3.65/gallon (as of May 15). A Florida resident who purchases a 2006 Buick LaCrosse with the standard V-6 engine and drives about 1,000 a month, would see an estimated monthly credit of $60, based on the current average premium fuel price of $3.19/gallon in that state.
"The services offered by OnStar are another example of how GM is using technology and innovation to deliver added value to its customers," said Chet Huber, president, OnStar. "The diagnostic e-mail service is a GM-exclusive and enables only GM to offer consumers a credit for their gas purchases based on the actual mileage that they drive ."
Beginning on May 25, consumers will be able to go to a special web site (www.fuelprotection.com) to calculate their potential savings based on their vehicle selection.
To participate in the program, consumers who reside in California and Florida must purchase or lease and take delivery of an eligible vehicle between May 25 – July 5, 2006 and enroll in the OnStar Vehicle Diagnostics service. The diagnostic service is a GM exclusive service that automatically runs hundreds of diagnostic checks on key vehicle operating systems and then sends a monthly e-mail to subscribers about their vehicle.
Eligible vehicles in California include the 2006 and 2007 Chevrolet Tahoe and Suburban (one-half ton models only), Impala and Monte Carlo; GMC Yukon and Yukon XL (one-half ton models only); HUMMER H2 and H3; Cadillac SRX; Pontiac Grand Prix; and Buick Lucerne.
Eligible vehicles in Florida include the 2006 and 2007 Chevrolet Impala and Monte Carlo, Pontiac Grand Prix and Buick LaCrosse.
The vehicles selected for this program were chosen because of their outstanding fuel economy and great consumer appeal. The 2007 Chevrolet Tahoe leads the full-size utility segment in fuel economy and has a two-wheel-drive EPA highway estimate of 22 mpg. The Chevrolet Suburban and GMC Yukon XL have EPA highway estimates of 21 mpg.
GM's mid-size cars also offer very competitive fuel economy with the Pontiac Grand Prix achieving an EPA estimated 30 mpg highway. That is better than a comparably equipped Honda Accord 6-cylinder (29 mpg highway). The Buick LaCrosse also has an estimated highway mileage of 30 mpg (with standard V6 engine).
Advertising primarily will be executed divisionally and regionally in each market. Divisional advertising will include television, radio, print and interactive. It will focus on the outstanding fuel economy of GM vehicles and the gas price protection offered only by GM. There will be some corporate print, radio and interactive advertising to kick off the program. Corporate advertising begins on May 25, and divisional/local advertising begins on May 26.
Reader Comments (Page 1 of 2)
Steve 10:53AM (5/24/2006)
Can't........stop.......laughing.......trying........but.......just........can't.......sto.........HAHAHAHAH!!!!!!!
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Mal Fuller 10:56AM (5/24/2006)
Did anyone at GM consider what an administrative nightmare this idea is? On-Star, computers make this possible but I don't think GM will ever try this again after they find out what a mess it's going to create.
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Saturn Salesdork 11:06AM (5/24/2006)
It's actually a great idea, and will cost considerably less than low finacing rates or rebates. Many dealers do this now, that includes Toyota, dealers will offer $1,000 cards for gasoline when buying a new car. Happens all the time in the South. The thought of free gas is very appealing to a new car buyer.
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nezromatron 11:17AM (5/24/2006)
or.. They could start developing more economical vehicles. nah.. this is much cheaper than R&D..
Sad when most of their innovation is happening on the sales end of the spectrum and not the product.
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Eric L. 11:29AM (5/24/2006)
People who buy cars and trucks with V8 engines are less concerned with fuel economy and more concerned with horsepower and performance. This is just a thinly veiled means of saying "here's another $3000 worth of incentives we don't want to get negative publicity on."
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Dave 11:31AM (5/24/2006)
HMMMM....Let's see..... GM is actually "Promoting" the purchase and use of inefficient vehicles. That sounds about right for a bean counter driven corp.
I'll just laugh as I drive by the gas station in my VW TDI getting near 50 MPG. I don't need no stinking OnStar linked, gas guzzling, overpriced, inefficient tank.
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Emor8t 12:56PM (5/24/2006)
I don't see your TDI towing 15,000 trailers either there Dave
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MikeW 1:12PM (5/24/2006)
About a month ago, I was with my cousin in his 2004 Excursion diesel when I pointed out a suburban with the rear axle steering (Delphi Quadrasteer)
We start talking to the driver, he says he gets 9.8mpg (thanks GM for the 4 speed automatic)
My cousin gets 16.5 mpg, normalizing 10% extra energy per gallons of diesel makes 15mpg gasoling
50% better mileage in a slightly heavier and less aerodynamic truck
GM powertrain is 'asleep at the wheel'
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Howard Kerr 1:41PM (5/24/2006)
Why not keep this simple GM? Give folks a gas card good for a preset amount, like Ford is already doing, instead of this rebate if gas costs more than X amount.
Man, for a company that is already an accountant's nightmare, why make things harder than they have to be?
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Non-Bizarro Adam 2:00PM (5/24/2006)
Nezromatron (#4),
The vehicles mentioned here actually get pretty good fuel economy in their respective classes. The Impala, Lucerne, Monte Carlo, and Grand Prix are all capable of almost 30 MPG, if not 30 MPG. The Tahoe and Suburban are class leaders in fuel economy, and even the SRX is competitive with the likes of BMW in the fuel economy category.
The onlt real gas guzzler I see here is the H2. On the subject of the promotion, it worries me to see GM having to resort to incentives again, regardless of their guise. Make a quality product, charge a reasonable price, and people will buy it without huge discounts.
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Lithous 2:10PM (5/24/2006)
"This is just a thinly veiled means of saying "here's another $3000 worth of incentives we don't want to get negative publicity on.""
Don't hybrids get incentives from the gov't? Is it worse for a gov't entity to give incentives or a manufacturer in a (supposed) Capitalistic country? And to think not MUCH (some but not much) negative publicity when the hybrids get incentives. Not to mention when I asked my co-worker how much more than the gas version was her hybrid and she tells me $3K and I see on Honda's site that it is more like $7K that leads me to believe there are even more incentives for hybrids than just the gov't. Oh, I forgot, it is GM we are talking about here, that changes the whole logic of the discussion, sorry.
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Micah 2:25PM (5/24/2006)
Bigger Logo, this story needs A BIGGER PICTURE!! ;)
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JR 3:04PM (5/24/2006)
6. HMMMM....Let's see..... GM is actually "Promoting" the purchase and use of inefficient vehicles. That sounds about right for a bean counter driven corp.
I'll just laugh as I drive by the gas station in my VW TDI getting near 50 MPG. I don't need no stinking OnStar linked, gas guzzling, overpriced, inefficient tank.
Posted at 11:31AM on May 24th 2006 by Dave
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Right, your nazi wagon slugs along at 50 MPH, how exciting !
My 500 horsepower Corvette gets 32-34 MPG and I assure you going cross country I will get there 15 hours sooner then you would and that's 15 hours of my life and hourly pay in my pocket while your VW is still huffing and puffing over Donners Pass.
No thanks, I'll keep my V8 and the extra weight it has so when you smash into me its your car that goes to the junk yard where it belongs anyways.
As they say dorks like little 4 bangers but real men own American V8 power :-)
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Ian 3:32PM (5/24/2006)
"No thanks, I'll keep my V8 and the extra weight it has so when you smash into me its your car that goes to the junk yard where it belongs anyways. "
Lol. Big words for a guy who drives a plastic car. TDI only goes 50mph? Lol again. Vette gets 32mpg? On the freeway. At 55mph. Maybe, in sixth gear.
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iQuack 4:26PM (5/24/2006)
Just another form of competitive pricing.
Linking a rebate with the high price of gas might not be a good idea because it makes buyers more aware of how uneconomical the promoted cars and SUVs are.
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karlInSanDiego 4:28PM (5/24/2006)
JR,
I'm interested in the real world mileage of sports cars. Mini Cooper S is likely to be my next car, but I don't expect to get 32mpg in it. Not with a screw at the other end of the fun pedal. JR what is your real mixed mileage?
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Carlton 4:47PM (5/24/2006)
As they say dorks like little 4 bangers but real men own American V8 power :-)
Making up for your physical shortcomings again with that V8?
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iQuack 7:20PM (5/24/2006)
There has been research on automobiles and their relationship to masculinity. See the site below for the latest information:
http://xs201.xs.to/xs201/06214/4Penis.jpg
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mike glass 10:53PM (5/29/2006)
i have a 2005 gmc sierra p/u that has a v8 motor and gets great gas milage about 400 miles in town wow now thats great and great gm technology
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FordTruckin 5:16PM (5/30/2006)
2006 Vette' TESTED MPG (NOT what they say it gets) is 21
VW gets about 44mpg, almost 2x as much, now about getting there earlier, im sure the highway speeds are the same for a vette and a tdi... also, i could get 2 or 3 vw's for one corvette. and unless you put more HP into it, the 06 has got 400HP (you didnt say what year so im using most recent). Now im not saying i hate vettes, i wouldnt mind having one but personally i like trucks and suv's cause i can haul people and trailers (ive got a travel trailer and a boat). Ive seen a golf pulling a boat but never a vette (it would probably be scaping plastic if i put a boat on one). Personally for safety, volvos are my favorite. XC 70 AWD
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