WSJ criticizes GM's "Employee Discount" offer

The Wall Street Journal's Joseph White doesn't think GM is doing itself any favor with the new "Employee Discount for Everyone" marketing program which just began hitting the airwaves. According to the GM BuyPower site, a Cadillac CTS was going for about 10% off sticker under this marketing program. A Chevy Suburban fetched a hefty 20.6% discount, or almost $10,000. White likes the idea that GM is trying new ideas to lure in buyers who are used to seeing zero-percent interest, cash rebates and low lease offers, but believes GM is heading down a bad path. Specifically, he believes the employee pricing scheme will be a benchmark etched in the minds of the consumers, permanently lowering their idea of GM car value. On the opposite, he sees positive signs for Chrysler, who was able to cut their average rebates by a fifth with the help of hot new products — not marketing gimmicks.