GM to unveil new incentives to assure buyers?
All the bankruptcy talk surrounding General Motors hasn't helped the largest U.S. automaker on the showroom floor, as sales have dropped by over 50% in 2009. Without additional incentives, GM sales may fall further with the the Obama administration's rejection yesterday of the 100-year-old company's most recent viability plan.
GM is apparently not planning on going quietly into the night, as the automaker is reportedly preparing some big-time incentives to help move metal in the midst of all this bankruptcy talk. Bloomberg is reporting that GM will unveil new incentives on April 1 (no joke) that in many ways mirror the Hyundai Assurance plan. Any worker laid off after purchasing a car or truck will reportedly be able to turn in the vehicle without taking a credit hit.
Another element of GM's reported incentive plan is backing the residual value of its vehicles. While details are still sketchy, the program would "provide some restitution for customers who are unable to resell their vehicles at a prearranged value when they want a new car or truck." Depending on the specifics, that could cost the automaker a pretty penny, as good resale value hasn't been its calling card for some time now despite recent efforts to the contrary like drastically cutting sales to fleets.
[Source: Bloomberg | Image: Spencer Platt/Getty]
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Reader Comments (Page 1 of 1)
wolfwy 9:37AM (3/31/2009)
Depending on the specifics, that could cost the TAXPAYER a pretty penny, as good resale value hasn't been its calling card for some time now.
Fixed, now that the government is guaranteeing GM warranties. (This qualifies as a warranty, correct?)
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Mike 10:01AM (3/31/2009)
Just give me a longer warranty, more than 3yr/36k that everyone offers. I've had good luck with my Saturn, but I want more than just good luck.
Besides, these assurance plans sound very complicated. The fine print for this program sounds like something Congress would write.
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Jim 11:32AM (3/31/2009)
All GM products carry 10 year / 100,000 mile.
superman211 11:32AM (3/31/2009)
Yeah, you want a nice car. Not one held together by luck. Buy a Mazda. They are the kind of nice little cars that are both fun efficient and affordable.
Kevin 10:01AM (3/31/2009)
Uh, isn't that called leasing?
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fixitfixitstop 11:30AM (3/31/2009)
Leasing is a sucker deal on almost any car. I'd like to see how a company can magically shore up residual values when they're discounting them upfront.
MajorGeek 10:22AM (3/31/2009)
Lets be honest with each other, shall we, before this goes into politics and bs.
Are you shopping for a new car?
Are you considering a GM product?
As a car enthusiast I can only answer yes, then no. The competition is fierce and with sales down across the board, you need an edge. This is most likely a good idea to get people to consider a GM product.
Oh well, keep trying I am sure you can come up with a viability plan that makes our politicians happy. Man, thats some of the funniest crap I have ever written here. A viability plan politicians approve of :) Good times!
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superman211 11:36AM (3/31/2009)
LMAO!
That was good and represents my opinion very well. They have nothing to compete with the mid range sports cars 370Z and G37 coupes or a 328i. Which is what I am in the market for at this point. Besides they don't make money for themselves even! Let alone run a company that makes good cars!
Galley 10:48AM (3/31/2009)
Not my original idea, but let's put in high-speed rail everywhere in the U.S. GM and Chrysler can build the trains.
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Jim 11:34AM (3/31/2009)
Oh man, you'd really have the Republicans up in arms about socialism then.