Bailout Watch 441: GM Set to Spend New Bailout Bucks on Fresh Incentives
The Financial Times carries the crazy news that General Motors is planning to celebrate its next bailout check by throwing more money–-your money—on the hood of its moribund metal. I repeat, GM wants to increase sales and reduce profits by using your taxes to reduce its prices to sell its cars that it wouldn’t be making–-couldn’t be making—if GM didn’t get some $30 billion of your tax money. This would [almost] explain GM’s otherwise inexplicable decision to increase production during the second quarter by 45 percent: they really do believe they’re going to sell a shit load of cars. Which they might if they slash, say, 50 percent off sticker. Hell, why not? It’s not their money. As TTAC, commenter lw points out, “the new owners are not interested in profits.” Wait! Don’t tell me! GM announces it’s “Thank You America” sale.
No, really. Advertising Age carries the also-not-entirely-unexpected news that GM dealers are tired of everyone saying GM’s going out of business. It’s . . . bad for business. They want The General to come out fighting.
“I would like them to make any kind of bold move,” said Bob Bakshi, a dealer in Valencia, Calif., who handles Buick-Pontiac-GMC and Cadillac. “I think a bold move is needed, like ‘Keep America Rolling,'” the marketer’s interest-free incentive following the attacks of Sept. 11, 2001.
Memo to Bob. Bold Moves is a Ford thing. Kinda. But don’t worry: Marketing maven Mark LaNeve is man after your own heart. With a razor.
More by Robert Farago
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NO NO NO NO NO NO NO NO NO NO NO NO NO NO! Exactly right RF! But hey, isn't the check on this behavior the 'business viability' plan GM is supposed to conjure before March 31? Then again, that's the only way the Volt will get sold....
A helping government hand for one company is a blow in the face of its competitor. I'm sure this will give Ford and the American workers at transplants a warm and fuzzy feeling.
....all the more reason part of BO's "Stimulus Plan" should have included some type of instant rebate for a new vehicle purchase (any vehicle - any manufacturer).