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During a dealer teleconference today, General Motors announced it would be launching a zero-percent financing sale beginning tomorrow, while simultaneously raising the prices of its 2009 vehicles.
The "72-hour sale" will run from June 24th through the 30th, and will offer customers 0-percent interest rates for 72 months on most Chevys, Buicks, Pontiacs and GMC vehicles. So far, there's no word on whether the offer will extend to Cadillac and Saturn. GM will also offer $500 in "bonus cash" to buyers who opt to purchase GM products outright rather than leasing them.

At the same time, the General is going to be raising the prices of 2009 models by an average of 3.5-percent "across the board," something that was bound to happen, according to Mark LaNeve, GM's vice president of vehicles sales, service and marketing.

On the production front, GM will be adding a third shift to its Lordstown, Ohio plant to increase production of the Pontiac G5 and Chevy Cobalt, while at the same time boosting production of the Pontiac G6, Chevy Malibu and Saturn Aura through the use of maximum overtime. Also of note: GM has hired Citibank to investigate the future of the HUMMER brand, which comes in the wake of GM's CEO, Rick Wagoner's announcement that "all options" are on the table regarding GM's faltering off-road brand.

[Source: Automotive News – sub. req.]

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    • 1 Second Ago
      • 6 Years Ago

      1- GM does al it can to repair 25 years of wasteful management. It started with Roger B. in the 80's. I know, I was there.

      2- The management at this time thoughts that automation and a new brand, Saturn, could change the tide.

      3- The UAW added fuel to the fire and proceeded to strike GM needlessly ; just remember the savage strike of Delphi in the 90's which paralysed GM in Dayton Ohio. Delphi got what it deserved.

      Why this intro?

      GM just could not build profitable small cars. The reason is quite obvious. If you pay a worker $130,00.00 a year, benifits included, I challenge anybody here to run a business with this kind of overhead.

      How did the UAW got those kind of advantages: easy. Strikes which cost billions of $$ to GM , Ford and Chrysler.

      Was it possible for GM not to give in into those absurd demands? Well look at the strike at American Axle. The US industry is on their Knees and the UAW decided to strike for more than two months.

      It takes two to tango my friends.
        • 6 Years Ago
        Good points.

        And the UAW apparently hasn't learned their lesson. They struck earlier this year at the plant producing the new Malibu, one of GM's successes and critical to their recovery.

        If GM fails, unlikely, the UAW will bear a substantial part of the blame.
      • 6 Years Ago
      And now, lets hear how better imports are and how American Manufacturers are doomed.
        • 6 Years Ago
        "Are consumer views"
      • 6 Years Ago
      The increase in the cost of steel alone is adding an average of $500 to the cost of a vehicle. GM cannot afford to swallow that.
      • 6 Years Ago
      With the weak dollar, GM should try to keep their prices the same in order to attract more customers. While other brands will have to raise prices to keep profits up, GM could've kept the same prices and sold more cars due to them being less expensive than the competition.

      Oh, well, just goes to show that they're really driving this company into the ground (pun intended).
        • 6 Years Ago
        0% has an effect that price changes don't.
      • 6 Years Ago
      Inflation is going to be a nightmare this year. All the government spin in the world is not going to be able to paper over this.
      • 6 Years Ago
      Zero % won't hurt GM all that much, if they increase the sales without laying money on the hood. They just won't make a % on the back side of the contract. Also it's for 72 hours only

      In the big picture, BK would not be that bad of an idea or situation for them. It would give them the ability to restructure and either get rid of the union (which so many here seem to hate without ever working in assembly) or get concessions that benefit the corp. As to losing money, GM still makes money, just not in NA.

      Regarding the 3.5% increase for 2009, watch the imports follow.
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