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193 vehicles returned under GM's 60-day satisfaction guarantee
Last month, General Motors raised some eye brows when it announced its 60-day satisfaction guarantee program giving customers the ability to drive their vehicles for 60 days and return them with
But while 193 appears to be fairly insignificant when compared to overall sales, it also represents 30 percent of the 653 people who actually opted for the 60-day option in lieu of a $500 discount. While some would say that the 30% number is very bad for GM, we'd say that it isn't much of a surprise given the fact that those 653 customers obviously weren't very sure about their purchase decision to begin with.
GM appears to be pretty pleased with the fact that so few vehicles have been returned during the program, but the automaker also plans to learn from those who were dissatisfied with their product. Vice President of Global Product Engineering Mark Reuss told the Associated Press that he and other executives plan to call customers who turned in their vehicles under the program, calling it "about the best unfiltered consumer feedback we've had" and according to the report, Chairman Ed Whitacre came up with the idea to make the calls. GM's 60-day guarantee promotion is scheduled to end on January 4, 2010.
[Source: Associated Press | Source: Joe Raedle/Getty]
Reader Comments (Page 1 of 3)
LaserRed38 4:36PM (11/20/2009)
I'm trying to come up with something witty to say...and...I got nothin'.
Reply
Erik 4:46PM (11/20/2009)
When that happens, the thing to do is not post a comment.
Tony 5:52PM (11/20/2009)
It's okay, look on the bright side, you got half a star for trying.
Lar7789789 7:47PM (11/20/2009)
Yea, But what I don't understand is why are the people returning the cars to buy another GM car? I mean there must be some incentive to exchange your current GM product that you are not happy with for a higher end model, than simply saying well I want my money back.
I mean why not let customers lease the car for 2 months, and if they want to keep it, then sell it to them at the Kelly Blue book price, or they can trade it on on another GM product or they can turn in it and owe nothing.
But there must be some gimmick to all this.......
I will never know because I do not plan on buying a GM car ever.
LaserRed38 8:29PM (11/20/2009)
Lol Tony. Funny, even though before Erik posted I had 2.5. Weird.
It's just a funny picture that is begging for a caption and everything I thought of didn't do it justice. ANYways...carry on y'all :).
tankd0g 1:01AM (11/21/2009)
How about there are lies, damn lies and statistics. I honestly don't know what to make of those numbers, but autoblog came up with something.
ripiopower 12:50PM (11/21/2009)
That's why I don't like the way GM handle things. well'' let's try this today and tomorrow well let's see what happens. They change their mind every day -- think about what you are going to do and then make your plans -- that's why they are always the shame of the auto industry''' no respect for them '' should be the opposite''
moss 4:38PM (11/20/2009)
What happens to the cars that are returned? Simple sold as used? Or certified pre-owned, whatever.
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Tourian 5:35PM (11/20/2009)
Yes. They are used cars.
Mike7 4:38PM (11/20/2009)
I'd really like to hear those phone calls.
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John H. 4:38PM (11/20/2009)
Actually, it means that only the small (
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Mike7 4:42PM (11/20/2009)
Please tell me " ( " is a typo.
John H. 4:44PM (11/20/2009)
Stupid blogtool...
As I see it, less than 1% of prospective GM buyers had doubts that were worth more than $500. If the car is over $50k, giving up $500 (1%) "just in case" is a very rational amount for risk protection against a lemon or something you just don't like.
Of these, 70% were OK with the cars, and GM saved $500 on each car. So that's a tidy little sum that offsets the other 30%.
Of the rest, up to 30% weren't OK, so that's a whopping $10 grand in additional marketing cost to be able to offer the 60-day guarantee in the first place.
Seems like GM did OK here.
John H. 4:45PM (11/20/2009)
@Mike7:
Try posting a "less than" sign...
Mike7 4:50PM (11/20/2009)
@John H.
You mean a " < ".
John H. 5:04PM (11/20/2009)
I dunno. It blew up my original post. Wierd.
Tony 5:53PM (11/20/2009)
Hennessey, is that you?
Gator 6:29PM (11/20/2009)
Tony: I don't think he has the ability to type intelligible sentences.
Not THAT Matt 4:39PM (11/20/2009)
I think the ability to trade up for a better equipped model is actually a pretty good idea for new car buyers, and those who don't do their research.
My first new car, a 2006 Cobalt Coupe, was an excellent car for me - but I wouldn't have minded trading up for a better equipped LT2 or what-not.
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Judy Zik 12:13AM (11/21/2009)
I think you actually may be on to something. The biggest buyers remorse I can ever remember having and I know hearing about from others is that they didn't opt for the next higher package. There is always some stupid feature you didn't get that annoys you as long as you have the vehicle.