GM launching zero-percent financing sale, raises prices by 3.5 percent
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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Reader Comments (Page 1 of 2)
tim 2:29PM (6/23/2008)
Unfortunately and I mean that most sincerely (bad for the US) this is just the start of a big giveaway that will be happening as GM moves closer to bankruptcy and eventual taxpayer bailout.
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Keat 2:34PM (6/23/2008)
I'm sorry, but GM is not in nearly as much trouble as Ford and Chrysler. They aren't going to need a tax payer bailout.
Aprime 3:11PM (6/23/2008)
Keat, you obviously haven't been paying attention to Ford lately.
GM is losing billions under Wagoner while Ford is turning profits.
Albeit, not due to their NA division but still.
Chrysler is... Chrysler, what else.
AZMike 6:55PM (6/23/2008)
"taxpayer bailout?"
this has NEVER happened in American history.
if you are remotely referring to Chrysler in the 1980's, you are 100% completely wrong.
Chrysler only received loan guarantees from the government for loans Chrysler secured from banks. the government NEVER gave Chrysler one cent.
by the way, Chrysler paid off all the loans six years EARLY.
and another little tidbit: Chrysler asked employees to forgo pay raises from 1981-1983 in exchange for shares of Chrysler stock. by 1985, most line employees were millionaries, with the average payout being $1.2 million.
of course at the time, all the "experts" said this was absolutely foolish for employees to take the stock offer, as Chrysler "was going out of business".
it's not time to be writing any obituaries yet, or in the future.
AZMike
TheOne442 2:34PM (6/23/2008)
If you have followed the American Car Market for the last few years this looks like the standard operating procedure for the mid-summer months. At least with the "Big 3"
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Colin 5:10PM (6/23/2008)
Toyota just announced 0% for 60 months on their trucks, FYI.
why not the LS2LS7? 2:36PM (6/23/2008)
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.
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Pete 2:46PM (6/23/2008)
I'd rather see a taxpayer buyout of an American company than the open checkbook that is dumping money into Iraq...
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Fernando 3:00PM (6/23/2008)
How about neither?
TheOne442 3:05PM (6/23/2008)
Bingo!
Phatman 9:35PM (6/23/2008)
@Pete
Don't worry, I'm sure we'll have both.
Mbuku Kanyau Mbithuka 2:44PM (6/23/2008)
And now, lets hear how better imports are and how American Manufacturers are doomed.
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tim 2:51PM (6/23/2008)
There is reality and then there is consumer views. The consumer at larger believes that for their dollar import brands are equal or better. This is not the reality necessarily. However it was GM's duty to its stakeholders to convince the consumer otherwise. Imports didn't take sales over 20 years Gm lost sales.
tim 2:52PM (6/23/2008)
"Are consumer views"
Gardiner Westbound 2:54PM (6/23/2008)
It's difficult to fathom how higher prices will improve sales of product the majority of purchasers won't touch with a 10-foot pole.
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Pete 3:12PM (6/23/2008)
Material costs have gone up...look at the increased cost of steel...
Patrick 8:51PM (6/23/2008)
Higher list prices and more discounting can help paper over car sales to upside-down SUV owners.
Fernando 2:59PM (6/23/2008)
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).
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Chris 6:21PM (6/23/2008)
0% has an effect that price changes don't.
oby 3:17PM (6/23/2008)
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.
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