GM extends employee pricing for another month, adds most '09 models
Sales figures for the month of August aren't out quite yet, but analysts predict they won't be good. Apparently they could have been worse for General Motors if not for the employee pricing deal that began on August 20th. Though scheduled to end yesterday, the employee pricing deal has now been extended through the end of September and most 2009 models have now been included. The original deal extended to all 2008 models and only the 2009 Chevy Cobalt and HHR, Pontiac Vibe and G5 and Cadillac CTS. Dealerships are reporting that employee pricing helped clear out their inventories, especially trucks and SUVs, which were the most heavily discounted. We've already wasted hours perusing this web page that details what each GM vehicle will cost with employee pricing and any other incentives available. Looks like we'll be wasting a few more.
[Source: Reuters]
Reader Comments (Page 1 of 2)
nataku83 12:15PM (9/03/2008)
Just thought I'd bring this up real fast even though it's not really relevant. Why hasn't GM updated their brand websites with the '09s yet? I saw a bunch of new Aveo 5-doors when I drove by the local Chevy dealer, but I can't build / price one online, or even get all the specs. I know you're trying to save money GM, but maybe you should sacrifice some or your useless ads and use the money to update your websites. I don't think anyone actually believes that employees pricing is a celebration of your 100th anniversary.
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XJ 2:37PM (9/03/2008)
They might be trying to get rid of enough 08s off the lots first before they make the transition to advertise the 09s.
Tim 12:22PM (9/03/2008)
Is this going to be an annual event? What will happen when the discount expire? If they ever do... What's plan B. All the cars that Gm said would turn around its sales haven't helped. Malibu Aura Astra Solstice G8.
IMO these are subsidized automobiles. 50 billion dollar taxpayer loan so they can discount their cars. You might as well buy them since your already help pay to produce them.
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mike 12:33PM (9/03/2008)
See i agree with you, but i think GM has cars that are horrid and no where near the competition, but with a few tweaks they can be good, in fact they can be very good.
#1 Forget Discounts, offer people free options, basically if you want to get a GM you get to choose one free option, Free Power Sun Roof, or Free NAV or Free Premium Audio.
GM needs something to attract people.
#2 Drastically cut or offer Automatic Tranny for free.
#3 Outfit all cars with Run-Flat Tires, which will allow the removal of spare tire and everything related to it, saving in the process 150-200 Lbs. Smaller fuel tanks on all cars. Pursue all cost effective ways to cut the weight of all cars.
Brian 12:35PM (9/03/2008)
I would not discount the fact that their new cars that you listed for example, have dramatically helped sales for GM. Remember their truck sales (their bread and butter for the last 10-20 yrs) are way down and the fact that they are finally getting some decent cars on the roads in helping prevent catastrophic drops in the overall sales.
I have seen tons of Malibus and Auras driving around here in Seattle....
Wally 2:02PM (9/03/2008)
@ Mike - Where do you expect to shed 150-200 lbs switching to run-flats? The jack and the donut hardly weigh that much and the run-flats weigh more than standard tires.
BMW took this route and from what I have read, it hasn't been an advantage. Many consumers actually criticize it b/c of the higher expense to replace the wheels and the lower performance of the tires.
mike 3:24PM (9/03/2008)
@ Wally, the extra wheel is not even the issue, the unit that holds the wheel is, that medal mound on which the wheel is placed so it does not move during driving. Once you add the wheel the weight will easily be that 150-200.
Have a look at your car, see how much those things weight.
idave101 2:36AM (9/04/2008)
Its called marketing Tim.
mike 12:24PM (9/03/2008)
I read earlier today that 80% of GMs vehicles qualify for employee discount. In about 3 years expect the resale values of your GM cars fall way down, they will take a beating like its nobodies business.
And the sad part is that by the time all these cars that are now on this Super Sale will come home to roost, Wagoner will be retired, Bob will be in some sort of Psychiatric Facility and others will be living the rest of their lives off that Golden Parachute.
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Tim 12:27PM (9/03/2008)
Don't forget the Taxpayers who will be left with all the pension liabilities and the federal "loans"
Privatize the profits socialize the losses
UH2L 12:33PM (9/03/2008)
Yes, but if you paid less to begin with then you're not getting less of a resale value percentage and you have less cash locked up in the value of the vehicle. That's why those resale value percentages aren't accurate or fully meaningful.
mike 12:40PM (9/03/2008)
@UH2L
True but new GM vehicles do not sell at that big of a discount compared to say Toyota. But the used cars do take a huge hit as far as price goes.
UH2L 12:48PM (9/03/2008)
I would think that GM vehicles sell at more of a discount than Toyota. And to add to my prior point, since cars are depreciating assets, it makes sense to buy a cheaper one because with the money you save, you can invest it in something else. I've done the math before and it turns out that cheaper, more discounted cars with worse resale value often make better sense financially than more expensive ones with higher resale value. I know. It's not just about finances. It's what you drive, but it is something to consider when the domestics are chastised for low official resale value based just on MSRP without discounts.
bilbo baggins 3:46PM (9/03/2008)
I love all you guy's "point of view"s
I love the GTO which isn't made anymore. Since I get a g8 discounted now. Can i buy a used 06 GTO with the 6litre for EVEN lower than blue book? I love that car. How much u guys think i could get one for ! ?
cFoo 12:29PM (9/03/2008)
A desperation move in desperate time. It's a vicious cycle. You sell cars at a lower price, the following MY consumers will expect nothing less. They shot themselves with this move. Like others have said, your GM resale will be in the gutter. It's not like it's not already is.
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Steve_S 12:38PM (9/03/2008)
Go Go terrible GM resale on an 09 CTS-V, I would very much consdier snapping one up after a couple of years.
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dkw 12:39PM (9/03/2008)
Anyone else wonder if GM has changed (read: increased) the Employee purchase price, gambling that employees would, for the most part, continue to purchase GM vehicles, and then when they offer the discount to "everyone" it's not quite the deal it used to be?
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stevereportdotcom 12:54PM (9/03/2008)
GM is starting to get punched harder in the face. Lack of fuel efficent cars and lack of quality (yes its getting better, but should have been better 5-10 years ago). Now on the plus side they do have some exciting cars. The Solstice, Sky, redesigned CTS, G8 and ZR1 are very good cars (ok maybe the Malibu also). When someone plunks down 20k+ for a car and its having more issues then Alaska's governers daughter, its not a good sign when someone is driving a 95' civic and not having that many issues.
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mike 12:59PM (9/03/2008)
I hate to be a negative guy but yesterday in was here on Autoblog, GM said that Kappa platform (Solstice and Sky) will not be renewed, G8 is not selling well at all from what i hear, and others you list are limited sales cars.
HWS 1:34PM (9/03/2008)
I bought an 09 G8 GT two weeks ago..got 1500 off msrp but they tried to bone me on the trade-in..probably paid the same as what the employee discount would be, but down the road I'll probably take a beating like a rented mule on the value...The industry and the dealers have never been much on ethics and nothing has changed.
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